Harvest International Investments, a completely owned subsidiary of Beijing-headquartered Harvest Fund Administration, has launched a sustainable life-style ETF in Hong Kong.
The Harvest China Sustainable Way of life Tech Energetic ETF will concentrate on Chinese language life-style expertise corporations that the asset supervisor sees as having long-term development potential.
Based mostly on the Solactive China Way of life Tech Index, the ETF additionally has allocations in direction of ESG leaders that take motion in opposition to local weather change and social equality.
The fund invests in 5 sectors: recreation and leisure, transportation, digitalisation, expertise {hardware} and monetary expertise.
Because of the development of the Chinese language financial system and the rise of the center class, Harvest International Investments believes all industries are present process a structural transformation pushed by innovation and expertise.
The fund home believes buyers will be capable to seize China’s future development by specializing in expertise and client discretionary with ESG integration.
By way of asset allocation, the fund invests 46.9% of its property beneath administration in client discretionary adopted by 22% in data expertise and eight.6% in communication companies.
The highest 10 holdings embody on-line procuring and e-commerce big JD.com (8.6%), Alibaba (8.5%) and vehicle producer SAIC motors (6.5%).
When assessing issuers’ performances, the fund supervisor takes into consideration ESG elements such because the depth of carbon emissions, neighborhood improvement and contribution, improvement of human capital and the typical wage of its staff.
The fund additionally eliminates corporations which have violated local weather change and social equality rules, corporations which can be concerned in ammunition, tobacco, nuclear power, oil and gasoline mining and coal mining.
The Harvest China Sustainable Way of life Tech Energetic ETF is the agency’s third ETF listed in Hong Kong after the the Harvest CSI 300 ESG Leaders Index ETF last year.
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