China ESG - Weekly news update: ​​FTSE Russell drops eight Chinese companies from indices

FTSE Russell drops eight Chinese companies from indices after Trump order

The index provider FTSE Russell said it would remove eight companies named by the US government as having ties to the Chinese military from some of its indices, after Donald Trump banned US investors from holding stakes in the businesses.

FTSE Russell said the companies — which include China Railway Construction Corporation, China Communications Construction Company and Hikvision, a maker of surveillance cameras — would be removed from its FTSE global equity indices and the FTSE China A Inclusion index on December 21.

The eight groups to be removed from FTSE indices ranged in market value from $3bn to $66bn. The list also includes: China National Chemical Engineering Company; satellite manufacturer China Spacesat; the China Nuclear Engineering Corporation; computer server maker Dawning Information Industry Group; and locomotive maker CRRC.

Source: Financial Times

S&P DJI removes Chinese firms from indexes after U.S. order

S&P Dow Jones Indices on Thursday became the second major index provider to remove some Chinese companies from its index products following a Trump administration executive order, in the latest market disruption from persistent Sino-U.S. tensions.

S&P DJI said it would remove mainland-listed A-shares, Hong Kong-listed H-shares and American Depositary Receipts (ADRs) of 10 companies including Hangzhou Hikvision Digital Technology Co Ltd and Semiconductor Manufacturing International Corp (SMIC) from all equity indexes prior to the market open on Dec. 21.

Source: Reuters

China Economic Information Service and Ping An Launches ESG Evaluation System for Enterprises and Investors

Ping An Insurance (Group) Company of China, Ltd. (HKEX: 02318; SSE: 601318) launched a technology-driven ESG evaluation system at the 2020 Boao Forum for Entrepreneurs – China Wealth Summit in Boao, Hainan on 5 December. The system is part of a collaboration between Ping An and Xinhua News Agency's China Economic Information Service in environmental, social and corporate governance (ESG) research to provide enterprises and investors with "product + consulting" solutions to promote sustainable investment and social development in China.

Source: CISION

China's Everbright hits $459m first close of ESG fund; halves target corpus to $1.5b

State-owned conglomerate China Everbright Group’s subsidiary China Everbright Limited announced on Monday that it has reached the first close of its green energy-driven environment, social, and governance (ESG) sub-fund, at 3 billion yuan ($459 million). The sub-fund, which was dubbed “China Everbright One Belt One Road Green Fund”, was jointly launched by China Everbright Group, China Everbright Limited, and China Everbright Environment Group (CE International) in April 2020. The three cornerstone investors have seeded 500 million yuan ($76.6 million) each to the fund, Everbright said in a statement.

Source: Deal Street Asia

LGIM launches ESG-focused fixed income ETF range

Legal & General Investment Management (LGIM) today announced the launch of its Core Fixed Income Exchange Traded Fund (ETF) range designed for UK and European wholesale and institutional investors.

Encompassing five funds, the range addresses investors' increasing need to gain exposure to core fixed income assets with ESG and liquidity considerations integrated into the investment design. Across the range, LGIM draws on expertise from its active and index fixed income teams, which collectively manage $236 billion in assets, to add value that can be lost in index investing for the benefit of investors.

All five core fixed income ETFs will be listed on the London Stock Exchange (LSE) with the L&G ESG Emerging Markets Government Bond UCITS ETF and the L&G ESG China Bond UCITS ETF also listing on the Deutsche Börse and the Borsa Italiana.

Source: International Investment

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