BNP Paribas Asset Management has launched a new China focused ESG ETF.

The Easy MSCI China Select SRI S-Series 10% Capped UCITS ETF offers access to large and mid-cap Chinese companies with the best ESG profile in their sector, using BNP Paribas AM’s ‘best-in-class’ approach. The firm says the ETF is the first listed fund to invest in a Chinese index using an SRI methodology.

The investment universe is the MSCI China Index, consisting of approximately 750 stocks. The MSCI China Select SRI S-Series 10% Capped Index consists of around 100 stocks, with a maximum index weight of 10%.

In addition to ESG criteria, those companies that do not respect the principles of the United Nations Global Compact or are involved in ESG controversies are excluded from the index. The same applies for companies involved in controversial weapons, tobacco, adult entertainment, alcohol, gambling, genetically modified organisms, nuclear power and fossil fuels.

Isabelle Bourcier, Head of Quantitative & Index Management at BNPP AM, comments:
“The originality of this approach is that it allows the implementation of a sustainable investment strategy in a key economic region. This new ETF completes our ESG index fund offering, with EUR 12.8 billion under management[4], making BNPP AM one of the market leaders.”