CICC Hong Kong Asset Management and Eastspring Investments Launch China USD Sustainable Bond Strategy

2022-07-25Corporate News

Hong Kong, 25 July 2022 - China International Capital Corporation Hong Kong Asset Management Limited ("CICC HKAM"), a wholly-owned subsidiary of China International Capital Corporation Limited ("CICC"), and Eastspring Investments (“Eastspring”), the Asian investment management arm of Prudential plc, announced the launch of the Eastspring Investments – CICC China USD Sustainable Bond strategy. 

The strategy combines both CICC and Eastspring’s expertise in China credit and Environmental, Social and Governance (“ESG”) investments to invest in US dollar denominated Chinese bonds which are aligned to ESG principles, including Green, Social and, Sustainability (“GSS”) labelled bonds. Eastspring has developed a proprietary ESG evaluation framework, which focuses on identifying the ESG risks of an issuer and its preparedness to mitigate such risks over time. CICC HKAM has established comprehensive procedure of Chinese USD bond investment, which is composed of multi-dimensional credit screening process, diversified investment strategies and multiple layers of risk control. The strategy will be the first such collaboration between Eastspring and CICC HKAM. 

Frank Xu, CICC’s Assistant President and Head of Asset Management Segment, commented, “We at CICC are extremely pleased to partner such a prestigious institution like Eastspring Investments. Incorporating ESG into China bonds with expertise of the two firms, the value proposition of the strategy is distinctive.”

“We are excited to be embarking on such a partnership with a strategic and established partner like CICC. China is an important market and offers a multitude of opportunities, and we look forward to integrating our ESG know-how with CICC’s established investment expertise vis-à-vis China credit,” said Bill Maldonado, Chief Investment Officer, Eastspring Investments.