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Chinese agencies put ESGETF on the most desired list

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Please see us ETF hub An easy-to-use tool to help investors with news and education, market updates and analysis, and the selection of the right ETF.

Exchange-traded funds, with a focus on environmental, social and governance themes, are the best choice for Chinese institutions investing in vehicles, despite continued performance doubts.

Investors in mainland China and Taiwan have ranked ESGETF as the top choice for new products, while Hong Kong investors have ranked ESGETF as the third most desirable ETF. New survey From the Brown Brothers Harriman Show.

More than 300 institutional investors, financial advisers and fund managers were asked for the survey, including 146 respondents from three markets: mainland, Hong Kong and Taiwan.

A total of 80% of the mainland investors surveyed said they plan to allocate 11% to 20% of their assets to ESGETF over the next five years.

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This is significantly higher than the percentage of investors in Hong Kong (49%) and Taiwan (39%) who plan to allocate the same amount to ESG ETFs during that period.

The proportion of investors in mainland China who are not planning to invest in ESG ETFs has fallen from 10% in the previous survey in 2020 to just 5%.

Research shows that this strong demand for ESG ETFs totaled $ 89 billion after a record global influx of these strategies in 2020, compared to just $ 28 billion in 2019.

But at least in China, there seems to be a lack of ESGETF strategies to meet new investment demand.

As of April, there are only about 15 ESG-labeled ETFs on the onshore market, most of which have been listed since 2019. This is compared to China’s more than 100 ESG Link public funds managed by 50 asset managers as of September last year.

Of the mainland respondents to the survey, 92% planned to increase their allocation to ESG investment strategies, not just ETFs. This is an increase from 82% who gave the same answer in last year’s previous report.

All but 2% of Hong Kong respondents said they would allocate to ESG strategies, and 84% of Taiwanese respondents said they would.

While interest in ESG ETFs has grown, investors have still expressed concern about ESG ETF performance.

In 2021, 42% of mainland Chinese investors recognized ESGETF’s performance as a potential concern. This is compared to a total of 60% of respondents who said they might be concerned in 2020.

“If you put these in the market [ESG] Crispigot, Head of Hong Kong ETF Services at Brown Brothers Harriman, said:

Piggott said 40% of investors surveyed in BBH’s global survey, including those from Europe and the United States, also emphasized performance concerns.

With the exception of ESG ETFs, cryptocurrency ETFs have been ranked as the second most popular strategy that respondents in China, Taiwan and Hong Kong want to see more in the market.

* Ignites Asia is a news service issued by FT specialists for professionals working in the asset management industry. It covers everything from new product launches to regulations and industry trends. Trial versions and subscriptions are available at the following URL: ignitesasia.com..

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Chinese agencies put ESGETF on the most desired list

Source link Chinese agencies put ESGETF on the most desired list

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