China’s first carbon neutrality ETFs raise more than US$1.9 billion as appetite grows for sustainable investing
- Four of the eight funds wrapped up sales on Wednesday and brought in around 11 billion yuan, while the other four will wrap up sales on Friday
- Covering a wider scope than its peers, the SEEE Index components include holdings from Contemporary Amperex Technology, China Yangtze Power and BYD
China’s first batch of carbon neutrality exchange-traded funds (ETFs) have raised more than 13 billion yuan (US$1.9 billion) as of Wednesday, according to local media reports, as Beijing’s carbon reduction campaigns boost interest in sustainable investing.
The eight ETFs, from some of the country’s top fund managers, track the SEEE Carbon Neutrality Index, which is compiled by the China Securities Index (CSI), Shanghai Environment and Energy Exchange (SEEE) and Shanghai Stock Exchange, among others.
Four of the funds – E Fund Asset Management, GF Fund Management, Fullgoal Fund and China Southern Asset Management – wrapped up sales on Wednesday and brought in around 11 billion yuan, according to mainland Chinese media, citing unidentified sales channels.
The remaining four, which include China Universal Asset Management, China Merchants Fund Management, ICBC Credit Suisse Asset Management and Dacheng Fund, will close sales on Friday.
As China’s first batch of ETFs tracking the index covering industries related to carbon neutrality, they address rising investor appetite for sustainable investing, which is in line with China’s goal to reach carbon neutrality by 2060.