China ESG - Weekly News: BlackRock becomes first to operate wholly-owned China mutual fund biz

BlackRock becomes first to operate wholly-owned China mutual fund biz

BlackRock Inc (BLK.N) has become the first global asset manager licensed to start a wholly owned onshore mutual fund business in China, as the government opens up the country's $3.5 trillion mutual fund industry.

BlackRock, the world's biggest asset manager, on Friday said the China Securities Regulatory Commission (CSRC) had given its Chinese fund management unit approval to begin operations. China scrapped foreign ownership caps in its mutual fund and securities sectors on April 1, 2020, under a Sino-U.S. trade deal.

"We are honored to be in a position in which we can support more Chinese investors access financial markets," BlackRock Chief Executive Officer Larry Fink said in a statement on Friday.

Several global asset managers, including Neuberger Berman, Schroders PLC (SDR.L) and Fidelity International, have also applied to set up wholly owned mutual fund businesses in China.

But some others have balked at entering a market congested with roughly 150 players. In March, U.S. money manager Vanguard Group dropped plans to obtain a mutual fund licence in China, citing a "crowded" market.

Source: Reuters

GTJAI Assisted ATRenew with its Debut on NYSE

Guotai Junan International Holdings Limited today successfully assisted ATRenew (also known as “All Things Renew 万物新生” or “Aihuishou 爱回收”, Stock code: RERE), the largest pre-owned consumer electronics transactions and services platform in China, to list on The New York Stock Exchange (NYSE). Endorsed as the “first ESG-related China concept stock”, ATRenew has swept along investors, oversubscribed by more than 10 times. GTJAI participated as one of the major underwriters.

ATRenew is both GTJAI’s 10th completed equity market deal this year and its first listed private equity investment. Last year the Company’s Private Equity Investment team participated in ATRenew’s series-E funding as a guidance on sustainable financial development, successfully fostering its steady growth and diversified development and driving it towards the goal of the NYSE.

Source: BussinessWire

House-Approved Legislation Would Mandate ESG Disclosure

Publicly traded companies would be required to disclose to shareholders certain environmental, social, and governance (ESG) metrics under legislation narrowly approved by the House of Representatives.

The House approved the Corporate Governance Improvement and Investor Protection Act (H.R. 1187) June 16 as part of a package of bills on a near party-line vote of 215-214. No Republicans voted for the bill and four Democrats voted against it.

Advocates for the legislation argue that investors have been demanding more—and better—disclosure of ESG information from public companies, with many investors viewing ESG factors as important, not just for evaluating reputational risks, but for evaluating companies’ financial performance as well as long-term viability.

“This bill provides investors with critical information on ESG matters by requiring public companies to disclose key information to shareholders regarding corporate political spending, worker pay, CEO compensation, climate risk, and country-by-country tax reporting, and provides issuers with clear, consistent standards to disclose this information,” House Financial Services Chair Maxine Waters (D-CA) argued in support of the bill.

Source: ASPPR

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