ESG Wealth Management Products See Rapid Expansion Since 2019

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The number of ESG wealth management products (WMP’s) issued by Chinese banks has undergone rapid growth following the unveiling of the country’s ambitious carbon emissions targets last year.

As of 22 October the number of Chinese bank WMP’s containing the terms “ESG” totalled 72, according to data from Chinawealth.com.cn.

In 2019 – the year that ESG WMP’s giddy made their debut in China, a total of 13 products were issued, while 2020 saw the release of another 36.

Nine of the wealth management subsidiaries of Chinese banks have issued ESG products, with Huaxia Bank’s leading the pack following the issuance of 35 in total.

45 of China’s ESG WMP’s are fixed income products, while 24 are mixed products and one is an equity product. The baseline yields for ESG WMP’s in China currently cluster within the 3.6 – 5% range.

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