Further proving that ESG investments can include…anything anybody wants…and proving that the entire notion of ESG investing is one giant racket, it was reported this week that ESG investment initiatives in China have investors funneling their cash into liquor and coal companies.
Fund manager Hou Chunyan, who recently pitched ESG investing as a way to stay compatible with China’s goals of “common prosperity”, said in a presentation in June that her fund, the Da Cheng ESG Responsibility Investment Mixed Fund, doesn’t exclude coal companies or liquor stocks, according to Yahoo/Bloomberg.
Additionally, the piece notes that ESG funds also invest in chemical manufacturers and solar and technology firms tied to forced labor in Xinjiang.
President Xi Jinping’s net-zero commitment and anti-poverty campaigns have prompted 112 new ESG funds to pop up in China over the last 20 months, according to Bloomberg data. This is about three times as many that debuted over the four years prior.
Retail investors in China are providing plenty of demand for the funds, Fidelity said. There are now $50 billion in ESG assets in China – about double what there was in the beginning of 2021.
And because “ESG” in China also means tethering your fund to China’s political goals, about 15% of the country’s ESG funds are invested in coal. More than 60% own steel companies, who are massive consumers of the country’s coal.
Bradford Cornell, emeritus professor of financial economics at UCLA, told Bloomberg: “People say ESG like we’ve agreed upon what it is — we’ve not. In China, the rules on environmental and social issues are made by the Chinese Communist Party.”
Liu Xiangfeng, whose Beijing-based firm, QuantData, specializes in ESG analysis, added: “A local analyst would consider being a state-owned enterprise a good thing, while their counterpart in Europe might consider it a deal-breaker. There is culture and ideology involved.”
The country’s CSI 300 ESG Leaders index includes China Shenhua Energy Co., which gets 78% of its revenue from coal mining, and alcohol company Kweichow Moutai Co.
About 10% of the country’s ESG funds also hold Hangzhou Hikvision Digital Technology Co., which is a company that has already been placed under U.S. trade sanctions due to alleged human rights violations in Xinjiang.
Shirley Xu, head of ESG research at China Asset Management Co., said: “As an asset manager in China, aside from using international ratings as a reference, we must follow China’s current stage of industry development and invest accordingly.”
Boya Wang, an ESG analyst at Morningstar Inc. concluded: “The government is bound to generate its own interpretation of ESG, because they want to make sure it will not conflict with the country’s national economic strategies…social inequality and local unemployment top the agenda.”
Article cross-posted from Zero Hedge.
Will America-First News Outlets Make it to 2023?
Things are looking grim for conservative and populist news sites.
There’s something happening behind the scenes at several popular conservative news outlets. 2021 was bad, but 2022 is proving to be disastrous for news sites that aren’t “playing ball” with the corporate media narrative. It’s being said that advertisers are cracking down, forcing some of the biggest ad networks like Google and Yahoo to pull their inventory from conservative outlets. This has had two major effects. First, it has cooled most conservative outlets from discussing “taboo” topics like Pandemic Panic Theater, voter fraud, or The Great Reset. Second, it has isolated those ad networks that aren’t playing ball.
Certain topics are anathema for most ad networks. Speaking out against vaccines or vaccine mandates is a certain path to being demonetized. Highlighting voter fraud in the 2020 and future elections is another instant advertising death penalty. Throw in truthful stories about climate change hysteria, Critical Race Theory, and the border crisis and it’s easy to understand how difficult it is for America-First news outlets to spread the facts, share conservative opinions, and still pay the bills.
Without naming names, I have been told of several news outlets who have been forced to either consolidate with larger organizations or who have backed down on covering certain topics out of fear of being “canceled” by the ad networks. I get it. This is a business for many of us and it’s not very profitable. Those of us who do this for a living are often barely squeaking by, so loss of additional revenue can often mean being forced to make cuts. That means not being able to cover the topics properly. Its a Catch-22: Tell the truth and lose the money necessary to keep telling the truth, or avoid the truth and make enough money to survive. Those who have chosen survival simply aren’t able to spread the truth properly.
We will never avoid the truth. The Lord will provide if it is His will. Our job is simply to share the facts, spread the Gospel, and educate as many Americans as possible while exposing the forces of evil.
To those who have the means, we ask that you please donate. We have options available now, but there is no telling when those options will cancel us. We have our GivingFuel page. There have been many who have been canceled by PayPal, but for now it’s still an option. Your generosity is what keeps these sites running and allows us to get the truth to the masses. We’ve had great success in growing but we know we can do more with your assistance.
Thank you, and God Bless!
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China and globalism are in lockstep.
China & Globalism = Global Communism