China AMC has a sophisticated ESG investment research processes with consideration to significant ESG risks. The Responsible Investment System of China Asset Management Co., Ltd. and ESG Communication System of China Asset Management Co., Ltd. are in place to advice the Company and employees on responsible investment practice.
China AMC is the first to directly include the ESG research team in the investment department and actively applies 6 ESG investment processes of strategy formulation, fundamental analysis, portfolio management, risk control, dialogue with listed companies, and portfolio monitoring and reporting, for the purpose of proper control over ESG risks and long-term returns.
Backed by international mainstream ESG evaluation systems, the ESG research team of China AMC has developed a set of ESG fundamental analysis framework applicable to the domestic market, with reference to features of Chinese public companies. The risk control department has constructed an internal negative information screening system across the Company to identify and warn of ESG risks of investing the underlying in a timely manner by virtue of capture and filtering of key words. On a quarterly basis, ESG researchers report ESG risk exposure of portfolios to respective fund managers, drawing their attention to adjust position size or follow up the reported risks. Also, the ESG team makes in-depth exchanges with over 20 major public companies on ESG practice, where all reported positive results and some got a higher third-party ESG rating.