SFC’s Description of ESG Fund
Hong Kong SFC classifies public funds on its official website, including environmental, social and governance funds. This category of funds incorporates ESG factors into their main investment priorities and reflects ESG factors in their investment objectives and strategies.
Hong Kong SFC states on its website that the inclusion of these ESG funds was only obtained from their fund documents. It did not verify the ESG factors included in the strategies, investment decisions and portfolio management adopted by these funds. Therefore, investors need to identify the nature and risks of these products in their selection.
Classification of ESG Funds by SFC
Hong Kong SFC divides ESG funds into listed fund products and unlisted fund products. The main difference between the two is that listed fund products can be traded on the exchange (with a specific trading code), while unlisted funds are not traded on the exchange but traded OTC.
All listed fund products are ETF products, most of which are issued by local fund companies in Hong Kong. The investment theme of these funds is mainly sustainability, and some of them specify specific investment scope, such as environment and sustainable energy. The investment strategies of the Fund mainly include positive screening and thematic investment.
The number of unlisted fund products is more than listed products. Most unlisted fund products are OTC products sold by non-Hong Kong fund companies. The investment assets of these funds include stocks, bonds, etc. Their investment themes include sustainability, climate change, water resources, environment, and food. The investment strategy of the fund mainly includes positive screening, thematic investment, fund of funds and others.
Investors can refer to the following link for more information:
List of ESG funds | Securities & Futures Commission of Hong Kong (sfc.hk)
