China Onshore
Over the past decade, responsible investment has emerged as a major trend in China’s asset management industry. As one of China’s earliest asset managers to embrace responsible investment, E Fund has consistently followed and practiced ESG principles over the years.
Regarding ESG practices, E Fund’s senior executives not only fosters the development of a sound ESG framework within the company, but has also actively offered input and suggestions to the industry for years. We maintain close communication and cooperation with peers, self-regulatory organizations, regulators, and academic institutions to collectively explore and facilitate the adoption and development of ESG principles in China. We aim to leverage our influence to share our ESG experiences and innovations, highlighting the importance of responsible investment in the high-quality development of the capital market.
Meanwhile, we constantly reflect on how to formulate and enhance industry guidelines and standards for green and sustainable investment to elevate ESG investment capabilities of the industry. By taking a long-term perspective and responsible attitude, we hope to deliver more robust returns for investors while creating long-lasting value for the society.
Perspectives of E Fund Senior Executives
Promote information transparency for better ESG information disclosure by companies and asset managers
“When it comes to the transparency of responsible investment, there are two aspects. First, it pertains to the transparency of listed companies’ ESG information, which forms a crucial foundation for responsible investment. The market has reached a growing consensus on reinforcing ESG information disclosure by listed companies, and has been driving the improvement of such transparency. Second, the transparency of asset managers’ responsible investment practices is also relevant. As fiduciaries, asset managers should communicate their responsible investment principles, approaches, and strategies to their clients, especially retail clients. Determining how and to what extent this information should be disclosed merits further exploration as we progress on our responsible investment practices.”
June 30, 2022, Sina Finance 2022 ESG Global Leaders’ Summit
Strengthen the internal ESG framework and deepen the integration with investment research
“In the future, ESG factors will be an integral part of the investment process. Only if ESG factors are taken into consideration in all investment decisions can we claim to engage in genuine social responsible investment. When making investment decisions, we analyze a company’s governance structure, business model, market conditions, and competitive landscape. In addition to this, we should also evaluate its ESG performance. Since ESG is inherently connected with the companies, ESG research should not be treated as independent or isolated from company analysis; otherwise, the research would be groundless.”
June 6, 2023, The 3rd International Forum for China Impact Investing
Advocating responsible investment to spur high-quality development of the capital market
“Responsible investment contributes to boosting long-term returns, controlling long-term risks, and enhancing the service of long-term capitals and high-standard opening-up. Studies show that companies with strong governance, which promotes social harmony and environmental friendliness, tend to exhibit better sustainability and lower investment risks. Embracing responsible investment helps generate long-term stable investment returns, thereby advancing the service capabilities of mid- and long-term capitals. With the common language of responsible investment, the communication between China’s mutual fund industry and long-term investors around the world becomes more effective. This facilitates a higher degree of openness and supports the growth and structural optimization of the mutual fund industry.”
September 13, 2023, Sina Finance 2023 ESG Global Leaders Conference