In this report, we reviewed the developing trends of China’s sustainable funds. We found the sustainability-focused funds in China shrank 11 per cent in the first half of 2022 compared with the end of 2021. CATL (300750.SZ), Huayou Cobalt(603799.SH), and Tianqi Lithium(002466.SZ) were the top holding stocks.
In addition, we found that the total new launches increased to 32 however, compared with 29 in the first half of 2021. Trending are still active funds which make up more than 80 per cent of the total and new energy and ESG themes are the most popular.
Finally, we found that sustainable funds outperformed the broader market, dropping 2.5 per cent vs. CSI’s drop of 9 per cent during the same period. The top 5 funds brought in 8 per cent gain.
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