Investors should be given credit — carbon credit in particular — when they hold carbon-intensive assets in Asia but aim to help these assets transit. However, regulations also need to stay updated in order to prevent greenwashing.
ESG integration, at its most basic level, is identifying the risks associated with environmental, social and corporate governance issues. So why has it become such a political topic?
Is the private market all about growth and return, or can it become an area where asset owners can also step up and make a difference in terms of gender equality?
Japan’s depreciating yen made the reopening of the country’s borders inevitable. While the move will allow dealmaking to be smoother, new overseas investments will be a costly affair for Japanese asset owners.
If the SFC clamps down on financial institutions, employees will not have a choice but to return, but it won’t help matters for the brain drain afflicting the industry.
More profound issues beyond the liquidity crisis of property developers include Chinese residents’ impaired confidence in the housing market and the slowing home sales dragging economic growth.
Institutional interest in cryptocurrency is undeniable, but myths around digital assets not being ESG friendly and its utility for money laundering continue to be blown out of proportion.
For all the frameworks and taxonomies that have emerged, the industry still lacks a gold standard for ESG investing, leaving investors to make do as social and regulatory pressures mount.
Global asset owners and fund managers are going to invest more into the world's second-largest economy. They need to decide how best to do so while living up to ESG principles.
The pandemic is set to reduce globalisation, explode debt burdens and cut traditional returns. Investors need to adapt, but opportunities will emerge amid as the pandemic subsides.
The spread of the coronavirus underlines both the extent of Beijing's control in China, but also the vulnerabilities this can cause. Overseas investors need to take stock.