Stricter regulation on issues such as climate change, or due to changing consumer preferences with respect to food and electric cars, are changing the entire investing environment. Sustainability concerns are subsequently directly affecting companies and investors, a trend that is particularly relevant for the A-share market of domestic Chinese equities.
Against the backdrop of China’s slowing economic growth and the government’s shift of focus from seeking GDP growth in absolute terms to a higher quality of it, there is increasing spotlight on the environmental impact and social implications of this growth. Corporates are being steered towards pursuing sustainable growth, both for the national interest and their own good. At the same time, their corporate governance mechanisms are under increasing international scrutiny, as the A-share market opens up to more foreign capital.
A structured approach to assessing the risks and opportunities that come with these changes can help investors make better-informed decisions and spot risks and opportunities at an early stage. This is becoming increasingly more important, as the pace of opening up China’s stock market has accelerated in the past 12 months. MSCI and FTSE Russell, two of the world’s leading index providers, have stepped up A-share inclusion into their mainstream indices.
This will drive a long-term fundamental change in the participation dynamics of the A-share market. Unlike its counterparts in developed markets, the Chinese A-share market is dominated by local funds, and by domestic retail investors in particular. Overseas investors tend to have better ESG investment discipline, which will push local institutional investors to follow suit. It means that ESG use in China has become an irreversible trend, and companies or investors who fail to embrace it will get left behind.
As a pioneer in sustainability investing, Robeco has long believed in the usefulness of applying ESG principles to fundamental equity investments. We have integrated ESG into the investment process for choosing stocks for the Chinese A-shares strategy from the very beginning.
We have ESG profile coverage for 100% for our portfolio holdings, and for more than 70% for our broader Chinese stock universe. We do much more than just scratch the surface by only looking at ESG scores from external data providers. Our ESG analysis is based on Robeco’s global framework and tailored to the specific characteristics of the Chinese stock market.
The content displayed on this website is exclusively directed at qualified investors, as defined in the swiss collective investment schemes act of 23 june 2006 ("cisa") and its implementing ordinance, or at “independent asset managers” which meet additional requirements as set out below. Qualified investors are in particular regulated financial intermediaries such as banks, securities dealers, fund management companies and asset managers of collective investment schemes and central banks, regulated insurance companies, public entities and retirement benefits institutions with professional treasury or companies with professional treasury.
The contents, however, are not intended for non-qualified investors. By clicking "I agree" below, you confirm and acknowledge that you act in your capacity as qualified investor pursuant to CISA or as an “independent asset manager” who meets the additional requirements set out hereafter. In the event that you are an "independent asset manager" who meets all the requirements set out in Art. 3 para. 2 let. c) CISA in conjunction with Art. 3 CISO, by clicking "I Agree" below you confirm that you will use the content of this website only for those of your clients which are qualified investors pursuant to CISA.
Representative in Switzerland of the foreign funds registered with the Swiss Financial Market Supervisory Authority ("FINMA") for distribution in or from Switzerland to non-qualified investors is ACOLIN Fund Services AG, Affolternstrasse 56, 8050 Zürich, and the paying agent is UBS Switzerland AG, Bahnhofstrasse 45, 8001 Zürich. Please consult www.finma.ch for a list of FINMA registered funds.
Neither information nor any opinion expressed on the website constitutes a solicitation, an offer or a recommendation to buy, sell or dispose of any investment, to engage in any other transaction or to provide any investment advice or service. An investment in a Robeco/RobecoSAM AG product should only be made after reading the related legal documents such as management regulations, articles of association, prospectuses, key investor information documents and annual and semi-annual reports, which can be all be obtained free of charge at this website, at the registered seat of the representative in Switzerland, as well as at the Robeco/RobecoSAM AG offices in each country where Robeco has a presence. In respect of the funds distributed in Switzerland, the place of performance and jurisdiction is the registered office of the representative in Switzerland.
This website is not directed to any person in any jurisdiction where, by reason of that person's nationality, residence or otherwise, the publication or availability of this website is prohibited. Persons in respect of whom such prohibitions apply must not access this website.