East Capital launches Ucits China fund with ESG screen

Fund provides European investors with access to investment opportunities on the Chinese onshore equity markets

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David Robinson

East Capital, the specialist emerging and frontier markets asset manager, has announced the launch of a Ucits version of its China A-Shares strategy that provides investors with access to investment opportunities on the Chinese onshore equity markets.

The strategy, which the group said seeks to deliver long-term capital appreciation by investing in high-quality companies across China and which incorporates ESG considerations within its investment and stock selection process, will be benchmarked against the MSCI China A Index.

Peter Elam Håkansson, Chairman and CIO of East Capital, said: “The launch comes after a period of significant focus on the Chinese market, following MSCI’s decision to include a number of the country’s A-Shares, traded on the Shanghai and Shenzhen stock exchanges, within its MSCI Emerging Markets Index.

“A-Shares are becoming increasingly attractive to investors, following the MSCI’s inclusion and the recognition that they typically are a better representation of the growth dynamics with a bias on consumption and services. In addition to this, valuations currently offer good entry points whilst we keep seeing a decorrelation from global indices, providing investors with a welcome layer of diversification to their equities portfolios.”

– This article first appeared in Expert Investor, a sister title of ESG Clarity.