Banking on net zero - ESG - Magazine | Asia Asset Management

Decarbonisation has become one of the most popular environmental, social and governance investment themes in China, especially with Beijing setting ou...

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China ,Beijing , ,Decarbonisation Has Become One Of The Most Popular Environmental ,Ocial And Governance Investment Themes In China ,Specially With Beijing Setting Outa Roadmap To Reduce Carbon Emissions From 2030 ,Nd Achieve Net Zero Emissions By 2060 Amp Nbsp Ata Webinar Organised Asia Asset Management On December 7 ,Liu Zhong ,Eneral Manager Of Index Provider Sino Securities Information Services Shanghai ,Nd Hing Tang ,Ounder Of Hong Kong Based Investment Firm Donkey Ministry ,Ave An Overview Of China Amp Rsquos Carbon Neutral Policy ,Nd The Development Of Climate Change Indexation Liu Summarised Some Major Energy And Carbon Emission Policies In China Amp Rsquos Last Two Five Year Plans Which Covered 2011 2020 ,Nd How Beijing Plans To Clamp Down On Fossil Fuel Consumption Under The 14th Five Year Plan Which Began Last Amp Nbsp One Of Major Esg Propositions Contained In New Is For Government Trim Annual Energy Per Unit Gross Domestic Product By 13 5 ,Nd Annual Carbon Dioxide Emissions Per Unit Of Gdp By 18 On Average Amp Ldquo Esg Concepts In International Markets Have Relatively Matured These Years ,Ut It Has Yet To Become The Mainstream In China ,Mp Rdquo Liu Observed Amp Nbsp He Believes That China Listed Stocks ,Infra Shares ,Ill Have Strong Growth Potential Because Local Investors Are Now More Conscious Of Sustainable Investments ,Hile Chinese Pension Funds Are Focusing More On Companies With Better Esg Reporting Moreover ,Iu Noted That International Index Providers Such As Msci And Ftse Are Incorporating More Chinese Equities Into Their Global Esg Benchmarks Amp Nbsp He Cited Figures From The Sustainable Investment Alliance Which Put Value Of Investments In Major Economies At Us 35 Trillion End 2020 ,Ccounting For 36 Of Total Global Investment Assets This Was Up 15 1 From 30 4 Trillion In 2018 ,Nd 54 2 From 22 69 Trillion In 2016 Amp Nbsp Liu Said Chinese Companies Have Been More Committed To Carbon Reduction And Renewable Energies The Wake Of Beijing Rsquo Net Zero Policy Unveiled 2021 But He It Rsquos Important Havea Customised Rating System Promote Green Investing So That Investors Will Comprehensive Yardstick Evaluate Emissions Criteria Locally Listed Indexation Sino Securities Index Information Has Focusing On Esg Analysis Its Currently Covers All China Over 7 ,000 Domestic Bond Issuers Amp Nbsp In April 2021 ,He Index Provider Created China Amp Rsquos First Carbon Neutral Benchmark To Facilitate Related Investments Nbsp Liu Said The Methodology Of Sino Securities Is Based On Resource Reduction ,Environmental Monitoring ,Nd Energy Upgrade These Criteria Are Used To Evaluate The Performance Ofa Share Companies ,Ncluding Assessing Their Energy Conservation And Emission Reductions ,Se Of Clean Energy ,Product Recycling ,Carbon Capture ,Olar Energy Storage And Use Of Non Fossil Fuels ,Mong Other Things Amp Ldquo Overall ,He Versatility Of The Indexation Allows Investors To Better Tap Into Beneficiaries From Zero Carbon Policy ,Mp Rdquo Liu Said Amp Nbsp According To ,Ack Testing The Carbon Neutral Index Found That It Consistently Beat Major China Benchmark Indexes For Example ,He Index Returned 143 In The Three Years To November 2021 Versus 60 5 For Csi 300 Over Same Period Amp Nbsp Its Constituent Stocks Are Concentrated Fast Growing Sectors Such As Industrial And Raw Materials ,Hich Havea 24 5 And 37 Weighting ,Espectively ,N The Index Amp Nbsp Isa Mix Of Growth ,Omentum And Market Capitalisation Factors ,Hich Liu Said Keeps The Volatility Relatively Low Compared To Major Benchmarks Like Csi 300 Index ,Articularly During Market Downsides Such As The Outbreak Of Coronavirus Crisis Sino Securities Index Information Licensed To Local Investment Bank Citic And State Owned Electric Utility Company Grid Yingda Corporation Launch Carbon Neutral Structured Notes In November 2021 Liu Said Product Was Amp Ldquo Well Received Rdquo Initial Quota 10 Million Fund Units Fully Subscribed At Trial Nbsp China Rsquos Exchange Traded Has Now Grown Almost 2 Trillion Rmb 313 8 Billion From Around 400 2018 ,Nd Liu Believes Carbon Related Products Will Bea Major Driver For Chinese Etfs Over The Coming Decades Amp Nbsp Sustainable Investment Outlook In Second Part Of Webinar ,Ang Discussed The Implication Of China Amp Rsquos Net Zero Carbon Plan ,He Beneficiary Sectors ,Nd The Trend Of Sustainable Investment In Country Although China Is Facing Tough Challenges Like Debt Woes Property Developers ,E Believes It Can Attain Moderate Economic Growth In 2022 ,Nd He Is Upbeat About The Transition Toa Green Economy On Back Of Net Zero Plan Amp Nbsp According To Tang ,He Policy Is Estimated To Create Combined Investment Demand Of As Much 138 Trillion Rmb ,R Over 2 5 Of China Amp Rsquos Annual Gdp ,Or The Energy Sector Alone Between 2020 And 2050 Amp Nbsp Ldquo Many Fund Managers Agree That Net Zero Policy Will Open More Investment Opportunities In Near To Long Term ,Mp Rdquo He Said Amp Nbsp On The Demand Side ,E Said Chinese Investors Amp Rsquo Growing Interest In Esg Is Underscored By Flows Into Sustainability Themed Funds ,Oting That These Funds Attracted 7 6 Billion Of Net Inflows In The Third Quarter 2021 ,Eversing From An Outflow Of 928 9 Million In The Second Quarter China Amp Rsquos Esg Funds Had 47 5 Billion Assets Under Management As September 2021 Nbsp Tang ,Ho Said Sustainable Assets Accounted For Almost 36 Of Professionally Managed In Major Developed Countries 2020 ,Elieves China Amp Rsquos Esg Assets Can Reach As Much 4 3 Trillion If 36 Of Capital In The Domestic Stock Market Flowed Into Sustainable Investing Nbsp Froma Strategic Perspective ,E Suggests That Investors Keep Watch On Some Renewable Energy Sectors Where China Dominates For Example ,Hina Amp Rsquos Solar Energy Manufacturing Accounts For Over 80 Of Global Capacity ,Hile Its Wind Turbine Makers Hada 45 Share Of The World Market In 2019 Amp Nbsp ,