China Southern Asset Management
Sustainable investment is still in its infancy in the Chinese onshore market. Many funds have not yet set up any environment, social and governance (ESG) -themed or green products. But China Southern Asset Management, led by general manager Yang Xiaosong, has integrated ESG principles into its own business operation as well as its investment decisions.
The fund became a signatory to the United Nations Principles for Responsible Investment in June 2018. Since then, it has been exploring domestic applications for ESG principles.
It set up the China Southern ESG Theme Equity Fund in the fourth quarter of last year. By the end of March, the fund had grown to Rmb2.07 billion ($290 million) in asset size.
Other than the newly developed ESG fund, the company also structured investment products focusing on the education industry and pension protection.
On top of those, as a council member of the China ESG Leaders Association, China Southern has worked with other banks and companies to create an ESG evaluation framework for China and, in turn, promote ESG investment in the country.
The company actively participated in more than 10 conferences and keynote speeches in 2019 on the topic of ESG investment in China.
To integrate ESG principles into its own investment decisions, the fund has built an ESG rating database and monitors public opinion regarding listed companies’ ESG awareness.