BNP Paribas Asset Management (BNPP AM) announced today the launch of BNP Paribas Easy MSCI China Select SRI S-Series 10% Capped UCITS ETF, a new listed index fund aimed at providing investors with exposure to best in class large and mid-cap companies on the Chinese market.

The new ETF tracks the MSCI China Select SRI S-Series 10% Capped Index, which is based on the MSCI China Index, which includes approximately 750 large and mid-cap securities of the Chinese market. Security selection for the SRI index begins by screening companies based on values and climate criteria and then applying MSCI ratings and MSCI ESG controversies scores. According to MSCI, the index aims to include securities of companies with the highest ESG ratings making up 25% of the market capitalization in each sector of the parent index.

esg playbook

 According to BNPP AM, the index is the first listed fund to invest in a Chinese index using a socially responsible investing (SRI) methodology.

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 making BNPP AM one of the market leaders.”