China ESG - Weekly news update Aug 2020 / 03

HKEx requires IPO applicants to disclose additional ESG information 

Following the May 2019 guidelines for listing application documents to contain the necessary ESG information, HKEx puts forward the following requirements for new IPOs (Guide Letter 3.7 a&b): Applicants should establish a mechanism for corporate governance and ESG requirements of the Stock Exchange in advance to meet the requirements at the time of listing. We recommend that applicants appoint directors (including independent non-executive directors) as soon as possible so that they can participate in the formulation of necessary corporate governance and ESG policies.

Source: Sina Finance 

Chinese companies top global list with biggest rise in climate-related revenues 

China has topped a global list with the highest share of companies posting rising climate related revenues, according to HSBC. HSBC Climate Solutions Database has over 3,000 companies worldwide which shows that there was a sharp rise in the number of companies offering climate solutions, and an increasing number have started offering climate related products and services in recent years. 28 per cent of the 300 companies with 10 per cent increase in their climate revenue exposure between 2015 and 2019 were from China.  


Bloomberg Launches Proprietary ESG Scores 

Bloomberg announced the launch of propriety ESG scores. This initial offering includes Environmental and Social (ES) scores for 252 companies in the Oil & Gas sector, and Board Composition scores for more than 4,300 companies across multiple industries. The ES scores provide a data-driven measure of corporate environmental and social performance that investors can use to quickly evaluate performance across a range of financially material, business-relevant and industry-specific key issues, such as climate change and health and safety, and assess company activities relative to industry peers. 


Pictet teams up with Tianhong to sell first northbound MRF fund 

Switzerland-based Pictet Asset Management has partnered with China's largest fund house, Tianhong Asset Management, to sell its first Hong Kong-domiciled fund in the mainland market under the Mutual Recognition of Funds scheme. Via the northbound route of the Mainland-Hong Kong MRF scheme, the offering has become Pictet’s first fund sold in China’s onshore market, a move that has been nearly one year in the making, after the firm  filed  the product registration with the  China Securities Regulatory Commission in October last year. 


Korea Overtakes China as Top Asia Sustainable-Debt Seller 

South Korea has overtaken China to lead Asia in sales of socially-responsible bonds this year, as global issuance of debt to fund the fight against Covid-19 surges. Borrowers in Korea have sold $11.9 billion of environmental, social and governance notes so far this year, the most in the Asia-Pacific region, followed by Japan with $9.5 billion and China with $9 billion, Bloomberg-compiled data show. China was Asia’s biggest issuer of such debt from 2016 to 2019.  

Source:Yahoo Finance