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Home » China green energy ETFs deliver best performance in first half

China green energy ETFs deliver best performance in first half

China green energy ETFs deliver best performance in first half

Surge in returns follows commitments made by Xi Jinping to achieve net zero emissions by 2060

Green energy themed exchange traded funds in China have outperformed other thematic and broad-based ETF strategies in the first half of 2021, amid signs of a shift in the economy towards greener energy and more environmentally friendly consumer products.

ETFs investing in green energy have dominated the list of best-performing ETFs in China over the first six months of the year, with seven of the 10 ETFs being green energy themed products, Wind Info data show.

E Fund Management’s E Fund CSI New Energy ETF gained 45.5 per cent, leading the market, followed by China Asset Management’s ChinaAMC CSI New Energy ETF, which delivered 44.6 per cent in returns.

Penghua Fund Management’s Penghua CSI China Mainland Low Carbon Economy ETF, ranked third, recording a return of 42.5 per cent, and the Ping An CSI New Energy Car Industry ETF, followed with a 41.9 per cent return over the first six months of the year.

Chinese president Xi Jinping has laid out targets for domestic carbon emissions in China to hit their highest point before 2030 before the country gradually transitions to a carbon-neutral economy by 2060.

Kevin Xu, partner, and mining and metals sector leader at Deloitte China, said most Chinese green energy ETFs focused on electric vehicles, batteries or solar energy.

“Against the backdrop of China’s 2030-2060 carbon targets, the electric power transportation and manufacturing sectors have been put under the spotlight and become the first movers to reduce carbon emission,” Xu said.

Kangting Ye, Singapore-based Asia senior analyst and China research practice lead at Cerulli Associates, said the rise of the green energy sector was being driven by both increasing domestic supply and demand.

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