Chinese funds focused on environmental, social and governance recorded net outflows of $1.4 billion in the second quarter, marking an even sharper slowdown than sustainable funds elsewhere in the region, reports the Financial Times. ESG funds in the Asia-Pacific region, excluding Japan and China, suffered a second consecutive quarterly decline in net inflows, attracting just $929 million during April to June, down from $1.27 billion in the first quarter, Morningstar noted in its latest sustainable funds report.
Taiwan raked in the most net inflows for the quarter at $91 million, while Hong Kong had $129 million. South Korea, India and Indonesia had the biggest net outflows apart from China in the second quarter among regional markets.
Figures for China, which were only available after the publication of the report, showed net outflows of $1.4 billion in the second quarter were a dramatic turnround from the $208 million in net inflows that the country had in the first quarter.