China ESG - Weekly news update June 2020 / 04

Beijing Published Guide for Foreign Asset Management Firms

On June 16, Beijing has officially released the Beijing Guidebook for Overseas Asset Management Institutions, listing a series of benefits and measures for foreign asset management firms in Beijing. For example, the corporate income tax exemption applies to the income from stock tradings by security investment fund managers; the exemption also applies to the income from the equity investment funds allocation, etc.

Please email to to request the copy of the guide.

Source: Wind,CFA Institute

June 19, 2020

Morgan Stanley Huaxin ESG Quantitative Fund Launched on June 22

On June 22, Morgan Stanley Huaxin ESG Quantitative Hybrid Securities (009246) was officially launched, supported by the company's independently developed ESG DataLAB investment and research platform. This platform collects and analyzes ESG information through big data and AI to identify potential risks and positive ESG factors, building optimal investment combinations.

Source: Morgan Stanley Huaxin Funds

June 22,2020

HKEX to Launch New Sustainable and Green Exchange

HKEX announced plans to launch the HKEX Sustainable and Green Exchange, "STAGE". STAGE will become the first sustainable finance platform in Asia. It will provide investors with accessible and transparent information about sustainable and green financial products. In its initial phase, STAGE will launch an ESG-related bond and Exchange Traded product repository. HKEX will further develop STAGE and consider introducing more asset classes and product types, such as derivative products linked to ESG indices.

Source: HKEX Pulse

June 18, 2020

FTSE Russell A-share Inclusion Took Effect, Large Net Inflow of Northbound Fund

On June 18, nearly 5 billion RMB of northbound fund net inflows hit a new high in the past 13 trading days. The capital inflow was partially attributed to FTSE Russell's increase of the A-shares inclusion factor from 17.5% to 25%, which took effect on June 18 at the close. The increase marks the completion of the first phase of FTSE Russell's A-share inclusion. According to the research, among the 63 companies of FTSE Russell's Consumption Concept Index (food and beverage, hotel catering, consumer finance), 26 have been further allocated by the northbound funds since June (June 18 compared with the end of May). 14 FTSE Russell Consumer sector Stocks were increased positions by foreign capitals in advance, reaching stagflation.

Source: Shujubao

June 18, 2020