Southern Responsible Investment Action Officially Launched In Twenty-First Century, The Capital Research Institute Held The "Key Mr." To Implement A Shares ESG

Southern finance and economics media group think tank twenty-first Century Capital Research Institute senior researcher Jiang Shiqiang

Responsible investment will be an important starting point for reshaping the ecology of A shares.

With the acceleration of the opening up of the domestic capital market and the continuous influx of overseas capital into the market, the governance concept of A shares is also quietly docking with overseas markets. One of the most important words is ESG. ESG, which represents Environmental (environment), society (Social) and corporate governance (Governance) respectively, has become an important factor of investment evaluation for institutional investors.

In 2020, twenty-first Century, the Capital Research Institute will officially launch the southern responsibility investment action, based on the ESG project development. The project development based on ESG takes the lead of domestic and foreign top investment institutions, builds the ESG evaluation system of listed companies, promotes the development and application of ESG index, and promotes the reputation operation service model of financial institutions.

Responsible media promotes responsible investment

Recently, the layout of head office for ESG investment has been increasing frequently. For example, the ETF launched the theme of sustainable development. The southern fund also issued a southern ESG theme stock fund. In addition, China Merchants Fund, Dacheng Fund and other companies also announced that they recently joined the UN PRI.

Leading domestic institutions to introduce ESG concept will become an important incision to pry A share investment in ecological change.

In twenty-first Century, the Capital Research Institute showed that after the A share was included in the MSCI index, MSCI's research team also carried out ESG research and rating for A share listed companies in the index components, which became an important reference for investors to invest in the social responsibility of listed companies.

The natural agreement between ESG and social responsibility has excellent tacit understanding with the credibility concept of the media.

From overseas experience, ESG investment has attracted more and more institutional investors' attention under the promotion of world-renowned media organizations. In the process of investment evaluation, we take into consideration three factors, namely, environment, society and corporate governance, and gradually promote them to become a key link in the relevant fields such as government departments, exchanges and investment institutions, including the introduction of supporting rules, the provision of research support, the compilation of indicators, and so on, and constantly enrich and improve the development of ESG investment.

In November 2019, the ESG project of the southern financial and media group was formally established, which means that in twenty-first Century, the Capital Research Institute officially launched the development of ESG evaluation system for listed companies. In 2019, twenty-first Century, the Capital Research Institute will officially launch South responsibility investment action based on data collection and collation in financial field, news investigation and policy trend research.

In twenty-first Century, the Capital Research Institute held that establishing the basic framework of ESG information disclosure and keeping pace with the development of ESG information disclosure in major international markets will help improve the ESG rating of Listed Companies in China and enhance the international competitiveness of China's capital market.

ESG is still a relatively new concept for the A share market. With the continuous advance of the relevant parties in the market, the change has arrived.

From November to 2019, from the twenty-first Century Capital Research Institute random exchange with several listed companies, the current cognition level of ESG is still uneven.

For example, when the Capital Research Institute in twenty-first Century communicated with some large enterprises such as Haier group, there was the idea of integrating ESG concept into the enterprise development strategy. Many companies also had a crisis due to the lack of importance of the ESG concept, including the long-term life of vaccine fraud, the obscene incident of the former chairman of the new town holding company and so on.

There are also some listed companies concerned about this. Although market changes can not be achieved overnight, with the promotion of regulators and the concern of investment institutions, the company will also pay attention and attention to it.

At present, China's ESG investment philosophy and related information disclosure are still at the initial stage. If we want to really put the floor to the ground, we need to build an ecological environment including resources and forces, so as to ensure that ESG has a better development in China. In twenty-first Century, the Capital Research Institute will play an intermediary role. Through the systematic evaluation of listed companies ESG and the establishment of the investment alliance, it will contribute to the development trend of A share ESG.

Investigation team highlights new value

Environmental factors, social and corporate governance, ESG factors have multiple manifestations in risk stocks.

As mentioned above, longevity creatures and Xincheng holdings have been able to trace the shadow of "Black Swans" that have occurred many times in listed companies. In twenty-first Century, the Capital Research Institute, on the capture of such ESG signals, sought clues for corporate risk and guided listed companies to focus on and strengthen the ESG concept.

In the case of longevity creatures, the company delisted at the end of November and formally bid farewell to the A share market. Prior to this, Changchun's longevity caused widespread concern because of the vaccine incident, which brought bad effects to the market. Changchun Changsheng parent company Changsheng bio share price fell continuously, and the company finally went to the point of being forced to withdraw from the market. The reason is also the company's performance of neglecting social responsibility and internal governance.

In the case of *ST Kang, "100 billion white horse stocks" have become the "spokesmen" of all kinds of capital market scandals. Among them, the problems arising from corporate governance are also the key reasons.

Beginning in 2018, the new controlling shareholder of Kang De Xin exposed the pledge crisis, and the crisis of the public market bond broke out at the beginning of this year, and the crisis gradually exploded. Although the quarterly report still has 15 billion of the funds, Kang Dexin is not yet able to pay the money, which really shocked the market. More recently, the cash management cooperation agreement with the Bank of Xidan sub branch of Beijing bank exposes the corporate governance disadvantages of listed companies such as the exposure of major shareholders. It is worth mentioning that after the new thunder of Kang De Xin, the financial problems behind the listed companies such as "deposit and loan double high" have also attracted the attention of many investment institutions. And subsequent cases also prove that these signals have long played a warning role to the thunder of companies such as 000413.SZ.

Some market forces ignore the ESG signal, causing banks, brokerages, public funds, trusts and other financial institutions to step on the thunder, which is closely related to the ESG market information collection, information analysis and research, and the financial utilization of information in the domestic market. In the past, when the company stepped on the mine, the continuous fluctuation of valuation led to the fluctuation of the net value of products. With the popularization and importance of ESG investment concept, the effect of "demining" will be improved.

According to the twenty-first Century Capital Research Institute's communication with the mainstream institutions in the country, the current consensus is that there are some "Black Swans" events in the capital market. The risk of non-financial areas such as enterprise morality and environment has become an important risk that can not be ignored in investment. The negative elimination method through ESG investment can effectively avoid stepping on thunder.

In twenty-first Century, the research team of the listed company under the Capital Research Institute will also give full play to its professional ability and fully handle the information analysis and research, so as to fully serve the investors in the A share market for risk screening. While the research team is committed to the standardization of non-standard information processing, the introduction of quantitative, visual ESG evaluation conclusion.

Jointly responsible agencies jointly build a coalition of responsibilities

The ESG framework of the head mechanism is already being built in a hot way.

Bo Shi fund's sustainable development of the 100ETF card, the southern ESG fund's southern theme fund is being issued, and the investment concept integrates ESG into it. In addition, at the end of last month, Yi Fonda fund also launched the first China's fixed investment strategy with responsibility for investment in Holland APG.

According to the twenty-first Century Capital Research Institute, more institutions have made layout plans for ESG.

An insurance department fund raising fund responded to the twenty-first Century Capital Research Institute and said that it was also ready to issue a ESG product in 2020.

In fact, although the ESG investment strategy has been gradually concerned and valued by the organization, it is also the initial intention of the organization to integrate ESG into the investment concept. But in practice, there will still be trampling.

This requires more professional institutions to strengthen signal acquisition, and at the same time, promote the market to consolidate the sense of ESG concept.

In twenty-first Century, the Capital Research Institute also launched the ESG framework research by the joint venture, set up a systematic evaluation standard and ESG analysis model for the current listed company system, and regularly produced the corporate social responsibility report of listed companies. Based on the study of ESG, the ESG narrow base index was set up and released according to the index, and the open index fund was launched with the financial institutions. It was incorporated into the national ministries, local governments, financial institutions and industrial enterprises as partners, forming a new influence in the financial field, guiding the investment behavior of the fund, and consolidating the influence of the media.

In twenty-first Century, the Capital Research Institute showed that, with the further deepening of the reform and opening up of the capital market, the continuous improvement of the market base environment and the increasingly mature investor concept, the market demand will inevitably lead to more and more perfect ESG products.