Sustainable Investing

ESG at ChinaAMC(HK)​

Introduction

As a leading Chinese fund management company in Hong Kong, ChinaAMC (HK) is committed to developing offshore and cross-border asset management business.

ChinaAMC (HK) adheres to the parent company’s ESG investment principles and develops detailed ESG investment processes within Hong Kong’s regulatory framework and based on Hong Kong market characteristics.

ChinaAMC (HK) has developed 4 ESG-related policies, including Sustainable Investment Policy, ESG Engagement Policy, Proxy Voting Policy and Climate-related Risk Management Policy with an aim to provide sufficient guidance to portfolio managers and other related employees involved in sustainable investments to ensure investments are made in the best interests of clients and in alignment with our fiduciary duties with ESG centric.

Our Purpose

ChinaAMC (HK) is committed to becoming a practitioner and promoter of sustainable investment in the asset management industry. ChinaAMC (HK) aligns with UNSDGs as firm-wide goals in investment and business operations.

We practice ESG integration strategy in our existing strategies, and also practice our sustainable investment by conducting engagement activities including proxy voting, especially in ETFs.

Milestones & Recognitions

ChinaAMC is rewarded as the Best ESG Manager – Mainland China by Insights & Mandate for the Market Awards of 2021 Professional Investment Awards.

ChinaAMC collaborates with NNIP, the experienced European ESG investor. In 2020, the two companies together launched an ESG UCITS fund investing in Chinese A-shares.

ChinaAMC is the first Chinese investment manager to support the Climate Action 100+ initiative.

ChinaAMC is a supporter of the TCFD to promote and support the disclosure of climate-related information.

China Asset Management Co., Ltd. (ChinaAMC) is the first full-service Chinese asset management company signing on to the UNPRI in March 2017.

Sustainable Investment

How to integrate ESG analysis into investment

The PRI defines ESG integration as “the explicit and systematic inclusion of ESG issues in investment analysis and investment decisions.” Put another way, ESG integration is the analysis of all material factors in investment analysis and investment decisions, including environmental, social, and governance (ESG) factors.

Sustainable Investment

Sustainable Investment Policy

ChinaAMC (HK) carries out practices according to our philosophy and understanding of sustainable/ESG investment, which is derived from internationally recognized principles.

As a China investment expert, ChinaAMC (HK) places particular focuses on the sustainable/ESG investment development in China. The sustainable/ESG investment in China within its continuous evolving infrastructure and ecosystem has seen rapid development over the years. Our practice will continue to be enhanced and deepened with this continuous development.

Governance Structure

ChinaAMC(HK)’s governance structure in respect of ESG investments consists of three layers–the Board of Directors, the ESG Committee, and Sustainable Investment Team. The ESG Committee sits the CEO, CIO, COO, in additional to leaders from various functional teams.

01

Convene semi-annual and ad-hoc meetings to discuss all ESG related matters, such as implementation progresses of ESG initiatives, ESG integration in investment, product plan, implementation of engagement and proxy voting, climate-related risk issues.

02

Lead functional departments to participate and cooperate in the implementation of ESG investments and risk management and the related regulatory requirements.

03

Supervise and scrutinize whether implementation of ESG investments and risk management is in violation of the ESG Investment.

04

Supervise Investment Department to implement ESG investing such as proper level of ESG integration in investment process (including but not limited to identifying climate-related risks and opportunities).

05

Supervise Risk and Performance Department to implement ESG risk reporting and disclosure related works.

06

Review annual implementation report submitted by Sustainable Investment Team.

07

Formulate Sustainable Investment Policy, Proxy Voting Policy, Engagement Policy and Climate-related Risk Management Policy. Lead internal review and policy updates.

08

Establish satisfactory internal controls in relation to management of ESG risks.

09

Devote human, technical and financial resources and flag inadequacy in various ESG initiatives.

Sustainable Investment Strategies

Active Investment

ESG-focused

For funds or portfolios which employ ESG-focused strategy, which means the funds or portfolios have clear or specific ESG goal in its investment objectives or strategies, ChinaAMC (HK) employs the Negative Screening, Positive Screening and Weights Tilting to construct portfolios.

Active Investment

ESG Integration

For funds or portfolios which employ ESG integration strategy, which means ESG factors have been considered during selection of investments with no clear or specific ESG goal in its investment objectives or strategies, ChinaAMC (HK) integrates ESG analysis to form research results and generate investment decisions during daily research activities.

Passive Investment

Index

For passive investment strategies with ESG focus, we shall measure the indices to what extent they untilise the abovementioned approaches in ESG-focused strategies defined by ChinaAMC (HK). The indices portfolio level ESG rating, ESG score momentum, carbon emission, etc. will be considered when selecting and/or constructing indices.

ESG Engagement

ESG Engagement Policy

The core objectives that ChinaAMC(HK) seeks to influence through our corporate engagement activities are to support the long-term sustainable development of listed companies and the improvement of their enterprise value. To achieve these objectives, in-depth learning of industries, promotion of best ESG practices, and examination of the companies’ ESG progress will be applied.

Engagement Focus

ChinaAMC(HK) believes the corporate engagement work is a part of investors’ assuming of active ownership, which is consistent with the fiduciary duty to our clients. Through engagement we could help the companies enhance their ESG performance and relevant information disclosure, which will present their intrinsic value more profoundly. ChinaAMC(HK)'s engagement consists 3 main topics.

PS:Engages in investor education programs to domestic and international clients.

e1

Environment

  • Climate change: Carbon emission
  • Climate-related Risks: Clean Energy, Renewable Energy, Energy Efficiency
  • Water Stress, Land Use and Raw Material Sourcing
  • Toxic Emission and Waste
  • Financial Environment Impact

Social

  • Employees and Supply Chain Labour Standards (Health, Safety and Human Rights)
  • Externalities of Company Operations
  • Product Liability

Governance

  • Unfair Competition
  • Fraud
  • Transparency, Minority Protection, Insider Trading
Proxy Voting
As an asset manager, ChinaAMC (HK) has the responsibility to exercise proxy voting of securities held in the funds or mandates under the company’s management on behalf of our clients in the clients’ best interests. Types of asset accounts managed by the firm include mutual funds, exchange traded funds (ETF), and other investment management or advisory mandates.
 

Climate-related Risk Management Policy

UNSDGs 13 Climate Action is one of the firm-wide goals for ChinaAMC (HK)’s investment and business operations. We strive to fully integrate climate-related risk considerations and monitoring investment and risk management while ensuring proper oversight are established and exercised, under the guidance of SFC’s baseline and enhanced requirements for climate risk disclosures. We will also actively advocate responsible behaviour in respect of climate change through stewardship activities, specifically proxy voting.
 

Investing involves risk, including possible loss of principal. Investment in emerging market countries may involve heightened risks such as increased volatility and lower trading volume, and may be subject to a greater risk of loss than investment in a developed country. Please carefully consider the Fund’s investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the relevant Fund’s prospectus. Please read the prospectus carefully before investing. ChinaAMC Funds are not sponsored, endorsed, issued, sold or promoted by their index providers (only applicable to ETFs and index funds). For details of an index provider including any disclaimer, please refer to the relevant ChinaAMC Fund offering documents.

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重要提示:

Private Funds

ChinaAMC(HK) is uniquely positioned in the market which enables it to leverage its extensive knowledge, research capabilities and investment experience in China to deliver a range of high-value asset management or investment advisory services to institutional clients worldwide. To bridge overseas investors with China opportunities, ChinaAMC (HK) is committed to utilize its local expertise to capture enormous investment potentials in China.

The private fund products issued and managed by ChinaAMC (HK) include Cayman Islands registered funds and Luxembourg domiciled SICAV funds*.

Browse through our website and discover our investment strategies. For private fund products information, please visit the product page by logging into your account.

* SICAV fund is an open-ended collective investment scheme common in Western Europe and may be open to public investors in certain European countries depending on its registration status.

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