China ESG - Weekly news update: China's IIGF reached cooperation with Deutsche Börse and STOXX

The ESG rating report of CUFE IIGF is available on Wind Financial Terminal

A few days ago, the International Institute of Green Finance, CUFE (hereinafter "IIGF") and Wind Information Technology Co., Ltd. (hereinafter "Wind") have reached a cooperation to publish the IIGF listed company ESG rating report and ESG biweekly on Wind Financial Terminal. Asset management institutions and listed companies can easily obtain and utilize the ESG rating reports through Wind Financial Terminal.

IIGF’s ESG rating is the first batch of third-party ratings publicly released by think tanks in China. Its ESG biweekly observes and discusses the development trend of ESG in the domestic and foreign markets from the perspective of professional think tanks, with a view to providing investors with a closer market and reflecting ESG cutting-edge information of application value.

IIGF's ESG rating report is based on a self-developed ESG database and currently covers the listed companies in the CSI 300 Index. As of August 2020, the IIGF ESG database has covered the ESG data of nearly 8,000 companies from 5,810 listed companies and more than 1,500 non-listed bond issuers. It covers all China A-shares ESG data and some Hong Kong stock data (Hong Kong stocks in Shenzhen-Hong Kong Stock Connect and Shanghai-Hong Kong Stock Connect) in 2019 and plans to cover all A-share and Hong Kong stock data in 2020.

Source: Wind

BlackRock to launch Aladdin Climate

Larry Fink, chairman and chief executive of BlackRock, said sustainability will be a tectonic shift in the industry for years to come as the fund manager will be adding more environmental, social and governance data to Aladdin, its technology platform.

BlackRock manages more than $127bn in sustainable products and the firm stands by its ambition to reach $1 trillion by the end of the decade. BlackRock has about 125 sustainable iShares ETFs with more than an aggregate $50bn in assets, as well as 67 active sustainable products, and the demand for sustainable products has accelerated more rapidly than last year.

Fink claims that one of the structural trends in the the industry is the demand for a unified enterprise and risk management platform like Blackrock’s Aladdin. The platform already has 1,500 ESG metrics and the firm wants to expand this data. By creating Aladdin Climate, the firm's ambition is to have a sustainability overlay in everything it does.

Source: Traders Magazine

Haitong to launch Hong Kong's first ESG China A-shares ETF

Haitong International has launched the first Hong Kong-listed ETF to provide environmental, social, and governance-adjusted exposure to Chinese A-shares. The fund will track the MSCI China A ESG Universal Index through physical replication. The Haitong MSCI China A ESG ETF has been listed on the Stock Exchange of Hong Kong on 15 October and been available in US dollar (9031 HK), Hong Kong dollar (3031 HK), and renminbi (83031 HK) trading lines.

The fund will track the MSCI China A ESG Universal Index through physical replication. ​The index is derived from the parent MSCI China A Index universe that currently includes 475 large- and mid-cap Chinese A-shares – firms that are domiciled in mainland China and trade in renminbi on either the Shanghai or Shenzhen stock exchanges, and the index covers only those securities that are accessible through the Stock Connect program.

The resulting index contains 429 names and is overweight financials (27.9% vs. 21.9% in the parent index) and consumer discretionary (8.2% vs. 6.1%) stocks while underweight consumer staples (13.1% vs. 17.3%), information technology (13.0% vs. 14.0%), and industrials (11.2% vs. 12.4%). ​The ETF will have estimated ongoing charges of 1.04% which includes a management fee of 0.60%. Distributions will be sent to investors on an annual basis in July.​

Source: ETF Strategy

CUFE IIGF reached strategic cooperation with Deutsche Börse Group and STOXX Limited

On October 11, CUFE IIGF and Deutsche Börse Group held a cooperation ceremony. CUFE IIGF and Deutsche Börse will jointly compile a series of ESG indexes based on China's only bilingual ESG database in Chinese and English independently developed by CUFE IIGF, and develop related financial products related to ESG ETFs in China. Deutsche Börse will publish news information and research report data in the first Chinese and English biweekly on ESG in China — CUFE IIGF's ESG biweekly — to share in-depth macro strategies, company research and industry trends with Chinese investors. At the same time, CUFE IIGF has established a strategic partnership with STOXX, a global integrated index provider under the German Stock Exchange, and will jointly develop China's ESG leading index and commit to the long-term development of the ESG market. European financial markets have always kept a close watch on sustainable development and combating climate change, and are in a leading position in the world. Therefore, the entry barriers for European investment require ESG to be incorporated into the investment decision-making processes. As the largest stock exchange in Europe, Deutsche Börse pays close attention to the development of the Chinese market and is in urgent need of high-quality Chinese ESG products to expand investment targets. CUFE IIGF has a professional ESG database covering all A-shares. While benchmarking against international standards, it independently develops a Chinese localized index system, which can effectively screen the main body’s ESG performance and incorporate ESG into the entire process of asset allocation.


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