Chinese authorities have approved the country’s first carbon-neutral exchange traded funds (ETFs) following efforts by regulators to drive green finance growth.
According to China Banking News, the Shanghai Environment Energy Exchange gave its approval to eight carbon neutral ETFs on 28 June, to companies such as DC Fund, China Southern Asset Management, China Merchants Fund Management, Fullgoal Fund Management, EFunds, ICBC Fund and Guangfa Funds.
According to Chinese state media, the funds are on track to accept subscriptions from investors as early as next week, in a move which it claims will ‘further raise the ability of the capital market to service the green transformation and upgrade of the economy, and guide market institutions and retail investors in making a huge contribution to green investment’.
Beijing previously set ambitious emissions mitigation targets in 2020 for achieving peak carbon by 2030 and carbon neutrality by 2060. In 2021, the People’s Bank of China launched a campaign to drive growth in domestic green finance.
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