Li Haipeng said that as an ESG rating system, which is an essential link in the integration process of China Southern Asset Management
South China Asset Management
New York, NY, July 22 2022 (GLOBE NEWSWIRE) — From July 9 to 10, Caixin Summer Summer 2022 was held. In the “Exploring Market-Driven Sustainable Development” section, Li Haipeng, Deputy Managing Director and Chief Investment Officer (Fixed Income) of China Southern Asset Management, shared his views.
Host: China Southern Asset Management is one of the premier ESG investment institutions in China. Deputy General Manager Li Haipeng is also the deputy head of China Southern Asset Management’s leading ESG group. How does China Southern Asset Management, a mutual fund company, understand ESG investing, implement ESG, from strategy implementation to internal assessment, including assessment the internal performance of KPIs?
“Different from traditional financial data, the ESG indicator system is based on environmental, social, governance and other factors, and focuses on companies’ ability to create long-term value. Therefore, at the time current, the ESG pricing factor is increasingly evident, We believe that in the medium to long term, quality companies and quality investment targets with excellent ESG performance not only have better financial indicators, but also greater resilience and long-term growth.Take the example of the field of fixed income securities, originally, we mainly used traditional credit analysis to select high quality targets. Now we are also trying to apply the ESG strategy to assess companies across multiple dimensions, which can play a role in identifying and preventing risks in a and certain extent. “said Li Haipeng.
Li Haipeng announced that China Southern Asset Management became a member of the PRI in 2018 and was also one of the first companies involved in ESG investments in China. At that time, ESG data and information was extremely scarce, which was the initial difficulty. Therefore, we can only explore different ways to solve some problems encountered in the ESG localization process. Currently, Fintech is the best solution.
“Through years of accumulation and filing, our ESG database and system are gradually being established and improved. Recently, we have completed the construction of China Southern Asset Management’s comprehensive ESG information platform. This platform consists of three parts: data, model and application, including internal and external ESG rating data, as well as many underlying data, climate-related databases and our internal research reporting system , including certain multi-dimensional ESG insights such as ESG litigation and voting tracking, which are deeply integrated into the company’s investment Detailed data insights and visual cross-section allow our investment researchers to better assess ESG performance, to provide intellectual tools and data support with local characteristics for portfolio management e, risk prevention and control, model building and conscientious portfolio management, and continually deepen the application of ESG in investment. “, said Li Haipeng.
Li Haipeng said that as an ESG rating system, which is an essential link in China Southern Asset Management’s integration process, the ESG system independently developed by ESG currently includes 17 topics, 39 ESG sub-topics and 115 subcategories. evaluation indicators. The entire index system is optimized for local validity, and that’s in scoring coverage. As of the end of last year, China Southern Asset Management’s ESG rating system covered more than 4,500 A-share listed companies and 6,364 bond subjects. On this basis, he continuously supplemented the data and optimized the methodology. In addition to data collected externally, researchers will continue to track companies’ ESG performance. Its research data is a very important source of first-hand data. As the ability to identify substantive ESG issues improves, the company’s ESG system is constantly being optimized.
“In addition to the rating system, the management structure and the process system are also important in ESG. After creating this system, we need to apply it to our investment practice. We have established a management system of ESG processes for investment, research and risk management of different asset classes, and builds the whole system of ESG investment process Specifically, in addition to quantitative and qualitative ESG analysis of objectives investment through Fintechs and researchers, our rating results will be directly linked to our risk control system, and fund managers give risk warning and intercept when placing trades in daily life With perfect deal management processes, we fully integrate the effectiveness of ESG rating into our process management process, and do a good job in integration and related integration. “said Li Haipeng.
Company name: China Southern Asset Management
Contact person: Si Chen
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