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How green is China? Market overview and perspectives for international investors

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28 February 2023 15:00 CET

Nowadays, global investors are paying attention to ESG development which has become one of the mainstream strategies in the international market. Compared to other emerging markets, Chinese ESG market has performed even better. 

China has opened up steadily over the past ten years. This particularly affects the financial market. For example, China has introduced Shanghai-Shenzhen-Hong Kong Stock Connect, Shanghai-London Stock Connect, Bond Connect, etc. This has tremendously improved the overall investment environment for foreign investors. In addition, domestic institutional investors' interest in ESG has increased. Since April 2022, 98 institutions in China have signed the UN PRI- more than half of them joined after 2019. Top Chinese fund companies such as Harvest Fund, China Merchants Fund and China Asset Management are actively optimizing ESG strategies and have also launched several ESG fund products.

Data from major international ESG rating agencies on global the ESG investment has also shown International Capital’s Insight on Chinese Financial Market. For example, FTSE Russell announced that it will further expand its sustainable investment capabilities in the Asia-Pacific region, including the expansion of the ESG rating scale for China's A-shares and the main construction of data models. As of November 2019, MSCI has increased the sum of the factor weights for all China A shares from 15% to 20%.

However, the existing leading international rating systems lack complete ESG data of China market, and the international general indicators can't conform to the regional characteristics. Therefore, the ESG value of China enterprises can't be reasonably displayed, and the global investors are difficult to get accurate evaluation results.

The IIGF ESG database is more suitable for Chinese market. On the one hand, IIGF ESG it has a wider coverage and time span, which covers more than 9,500 companies and 6,000 bond issuers, and includes nearly 10-year Environmental data of CSI 300 Index main companies, and 6-year ESG related data of CSI 800 Index objectives. On the other hand, IIGF ESG rating methodology combines the development status of China, and introduces localized indicators such as "Party Building" and "Rural Revitalization" to make up for the difference between Chinese enterprises’ information and standard index in. Given that, IIGF ESG database can provide a more valuable reference for investors.

This webinar focuses on the following themes: 

  • Global investors will deeply understand the development status of China ESG market through the introduction of academic experts and business leaders who have been deeply involved in China ESG market.
  • Wide application of the IIGF ESG database: formulating relevant rating system, compiling release index and issuing rating reports of relevant enterprises.
  • How will global investors grasp the real ESG performance of China enterprises and the investment path of China ESG market and how do the solutions Deutsche Börse  offers support this objective? 

Our experts are:

  • Professor Wangyao, Director General of International Institute of Green Finance (IIGF), Deputy Secretary General of Green Finance Committee of China Society for Finance and Bank Research, Fellow at the Institute for Sustainable Leadership, University of Cambridge (CISL)
  • Professor Yichen Shi, Chief consultant of Zhongcai Green Index
  • Michael Hsih, Deputy Head of China Market Development, Deutsche Börse Group
  • Eva Huang, CEO of DWS Far Eastern Investments Ltd.
  • Dr. Alireza Dorfard, Head of Market Data + Services, Deutsche Börse Group

The free webinar will take place on 28 February 2022, 15:00 CET. Please register under the following link: China ESG Developmen:Market Overview and Trade (chinagreenindex.com)

Please note that due to your company’s fire wall restrictions it might be necessary that you have to register through your personal device.