GUANGZHOU, China, Aug. 30, 2024 /PRNewswire/ -- China has demonstrated stepped-up efforts to
ramp up green transition in all areas of economic and social
development and to promote relevant financial instruments, such as
green equity financing and green financial leasing, as strengthened
by recently issued guidelines from the Communist Party of China
Central Committee and the State Council, as reported by Xinhua News
Agency. On one hand, according to The People's Bank of China, the balance of China's green loans in local and foreign
currencies reached US$4.1 trillion
(30.08 trillion yuan) at the end of
2023 and delivered a year-on-year increase of 36.5%, leading all
other forms of loans. Moreover, the cumulative domestic green bonds
issuance in China approached
US$498 billion (3.62 trillion yuan), with the majority of raised
capital supporting the green transition of energy, construction,
and mining industries, based on a study from International
Institute of Green Finance.
On the other hand, many financial institutions have been active
in launching sustainable investment funds and 296 mutual funds
focusing on sustainability and ESG managed assets over US$55.5 billion (403.7
billion yuan) as of the end of 2022, according to Asset
Management Association of China.
As the largest mutual fund manager, E Fund Management Co., Ltd. ("E
Fund") proactively navigated this trend by joining PRI as one of
the first signatories in China and
launching several ESG-related products in recent years, including E
Fund Environmental Theme Flexible Allocation Hybrid Fund and E Fund
Carbon Neutral 100 ETF.
Meanwhile, the guidelines also encouraged the optimization of
investment mechanism and the participation of social capital in
green and low-carbon projects. Against the backdrop of fund
managers' rising dedication in ESG investment strategies, leading
institutions have independently constructed ESG-integrated research
database and methodology.
Notably, E Fund has been enhancing its proprietary ESG rating
framework to better align with A-shares market characteristics. The
rating framework used a combination of quantitative and qualitative
evaluation methods to evaluate portfolio companies' ESG performance
from three aspects – environmental impact, environmental management
and environmental opportunities. In addition, E Fund has published
climate risk management framework to effectively monitor and manage
the impacts of climate change on investees and investment
portfolios.
About E Fund
Established in 2001, E Fund Management Co., Ltd. ("E Fund") is a
leading comprehensive mutual fund manager in China with close to RMB
3.3 trillion (US$ 454 billion)
under management. It offers investment solutions to onshore and
offshore clients, helping clients achieve long-term sustainable
investment performances. E Fund's clients include both individuals
and institutions, ranging from central banks, sovereign wealth
funds, social security funds, pension funds, insurance and
reinsurance companies, to corporates and banks. It is a pioneer and
leading practitioner in responsible investments in China and is widely recognized as one of the
most trusted and outstanding Chinese asset managers.
Note: As at Jun 30, 2024. AuM
includes subsidiaries.
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