Sustainable funds in China suffered high net outflows in the second quarter despite continued optimism that the sector would be boosted by China’s commitment to achieve carbon neutrality by 2060.
Following President Xi Jinping’s announcement of China’s net neutral goals, net flows into ESG funds jumped dramatically in the fourth quarter of 2020, to hit a record high of Rmb34.5bn ($5.3bn), up from just Rmb4.3bn in the previous quarter, according to Morningstar data.
However, ESG fund growth in China has since slipped dramatically.
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