The Impact and Challenges of ESG Investment Philosophy on Chinese Capital Market and Investment Practice

Abstract

Environmental, social and governance (ESG) investment philosophy has gained significant traction in recent years. This philosophy focuses on investments in companies that prioritize environmental sustainability, social responsibility, and good corporate governance practices. This paper examines the impact of ESG investment philosophy on the Chinese capital market and investment practices. It highlights the growing interest in ESG investments in China and the challenges that arise in implementing ESG practices. Additionally, this paper discusses the need for increased transparency and standardization in the ESG information disclosure and rating system, as well as the importance of education and training for investors and professionals in the financial sector. It also explores the potential benefits of ESG investment, such as long-term financial performance, and positive social and environmental impacts. Overall, this essay concludes that the ESG investment philosophy presents both challenges and opportunities for the Chinese capital market and investment practices, and that continued efforts are needed to foster sustainable investing practices in China.