Why ESG funds have become the new investment hotspot
In the global "carbon neutral" background, ESG (environmental, social and corporate governance) funds have become the new investment wind mouth, the number and scale of domestic ESG funds ushered in a wave of strong growth. So today I'm here to organize the knowledge related to ESG funds, let's take a look together!
ESG product size is considerable
With the introduction of China's "dual-carbon" policy, more and more public equity responded to the trend of launching ESG-themed funds.Wind data show that, as of September 14th, with the establishment of the fund as the statistical caliber, ESG concept funds have been established 63 this year. The concept of the fund has been established this year, 63, compared to the same period last year, 44, an increase of 43%; pure ESG fund has been established this year, 17, compared to the same period last year, 13, an increase of 30%.
The scale of the domestic ESG fund has been very considerable. wind data show that as of September 14, the whole public equity market survival of 279 ESG investment fund products (including pure ESG fund and pan-ESG fund), the total size of more than 400 billion yuan. Among them, there are 49 pure ESG funds with a scale of over 28.9 billion yuan.
The research report released by Deppon Securities on September 13 shows that as of September 4 this year, in addition to the undisclosed size of the product, the total net value of ESG-themed bank financial products reached 92.738 billion yuan, of which more than 32.5% of the products have an asset size of more than 500 million yuan, and the scale of the ESG-themed bank financial products maintains a growth trend.
Investment bias food energy and science and technology
China Securities Journal reporter by checking the market 49 pure ESG fund half-yearly report found that there are 25 funds of the top ten long positions in the list of stocks appeared in the figure of Guizhou Moutai, at the same time, the era of Ningde also listed in the list of 22 funds of the top ten long positions in the list of stocks. In addition, the stocks favored by pure ESG funds also include LONGi Green Energy, Lixun Precision, Wuliangye, Dongfang Fortune, Meirui Medical and Luzhou Laojiao, which are on the top 10 long position lists of more than 10 funds.
In addition to the food industry and the new energy industry stocks favored by pure ESG funds, biomedicine, banking and insurance and electronic technology sectors are also important investment areas for these funds, Aier Ophthalmology, Tiger Pharmaceuticals, China Merchants Bank, Industrial Bank, Tencent Holdings, and other stocks are frequently found in the top ten long position list of pure ESG funds.
Recently, an organization released the "China ESG Influence List", *** there are 40 companies on the list, mostly concentrated in the field of energy, Internet and medicine. In addition, compared with the "2022 China ESG50 list" found that *** there are five companies on the list at the same time on the two ESG lists, respectively, LONGi Green Energy, Alibaba Group, Jingdong Group, China CNR Corporation and TCL.
Opportunities and Challenges
ESG Influencers in China
ESG Influencers in China
While the scale of ESG funds continues to expand, their performance is under pressure.Wind data shows that among 49 pure ESG funds, only seven have positive returns so far this year, and more than half of the funds have lost more than 10 percent so far this year. In addition, in the entire public market 279 ESG investment fund products (including pure ESG funds and pan-ESG funds), only 64 funds have positive returns so far this year, and the phenomenon of polarization of returns is more obvious.
In addition, the global ESG investment has not yet formed a unified evaluation system. Chen Wenhui, vice chairman of the National Council of Social Security Funds, has said that the number of global ESG evaluation organizations exceeds 600, and the evaluation standards vary widely due to different understandings of the environment, society and corporate governance. The pace of global ESG investment development has been somewhat constrained by the lack of uniform standards.
But Chen Wenhui also believes that precisely because of the lack of uniformity in standards, China has a much broader space to establish standards for ESG funds. "Compared with financial regulatory standards, ESG evaluation standards are more oriented to the flow of capital and have a greater impact on the real economy and industrial development. Only by first establishing China's own ESG evaluation standards and driving greater development in domestic ESG investment can we have a greater say in setting ESG global standards." Chen Wenhui emphasized.
"We should not only refer to international ratings, but also study the current stage of industry development in China." A researcher from an asset management company told China Securities Journal that they will analyze their investments based on China's national conditions and industry characteristics, and the principles and methods they use will change.
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