China ESG - Weekly news update Sep 2020 / 03

Baillie Gifford receives China onshore license 

The wholly foreign-owned enterprise of U.K.-based asset manager Baillie Gifford has received regulatory approval to operate in China’s onshore market as a private fund manager, becoming the 30th foreign firm to obtain the PFM qualification.

The Edinburgh-headquartered firm completed the PFM registration via its WFOE, Baillie Gifford Investment Management (Shanghai), on September 1, official records from the Asset Management Association of China show.

Source: Funds elector asia

HK, mainland China collaborate on green financing for Greater Bay Area 

Hong Kong and m* China have joined forces to establish the Greater Bay Area Green Finance Alliance, which aims to facilitate the growth of sustainable projects. The alliance will be tasked with promoting green finance standards and certification across the Greater Bay Area, which includes Hong Kong, Macau and Guangzhou.

The alliance is currently supporting five green finance projects. These include the Green Building Project, the Blockchain Solar Project and Carbon Connect led by Hong Kong, the Research and Practical of Solid Waste Disposal project supported by Shenzhen and the Green Supply Chain Financing Action Guide led by Guangdong.

Source: Ignites asia

FTSE's expected inclusion of China govt bonds could bring in US$140B 

Chinese government bonds could see a US$140 billion infusion with FTSE Russell's expected inclusion of the products into its World Government Bond Index, Reuters reports, citing Goldman Sachs analysts. China recently put forth draft rules to make it easier for foreign investors to tap the country's bond investments by consolidating multiple schemes currently overseen by various agencies.

This comes as FTSE Russell gets set to decide on September 24 whether to welcome Chinese government debt in its benchmark bond index. There was widespread consensus among analysts prior to the release of the draft rules that FTSE Russell would allow Chinese bonds in its World Government Bond Index during its annual review this month.

Source: Reuters

AIIB-Amundi Climate Change Investment Framework 

The Asian Infrastructure Investment Bank (AIIB) and European asset manager Amundi announced today the launch of the new AIIB-Amundi Climate Change Investment Framework. 

The new framework is a benchmark investment tool that aims to assess climate change risks and opportunities in line with the three objectives of the Paris Agreement at the issuer-level, enabling investors to discover opportunities not yet priced in to the market. The framework has been endorsed by international certifier and green bond market thought leader Climate Bonds Initiative. 

Source: AIIB

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