Insights

As a next step of developing ESG information disclosure system, China will mandate environmental information disclosure for all A shares by 2020. At present, Chinese government is paying close attention to environmental protection, thus the environmental supervision on listed companies has reached an unprecedented level.

We know all too well that global responsible investing requires an ever-increasing demand for substantive and proven ESG data. However, in China due to the historical lack of regulatory guidelines, most existing ESG data on listed companies has until now been a voluntarily disclosure and thus PRC issuers have been inclined to only provide information that favors to their own interests.

China's securities market is accelerating the introduction of ESG investment due to the great pressure of regulatory initiatives and foreign capital inflows. After recognizing the serious negative impact of short-term speculation, PRC regulators are committed to building a rational value investment culture.