Current Status and Future of ESG in China

Abstract

This paper first introduces the historical origin, development status and related elements of ESG. From the historical evolution, it can be found that ESG investment is in the rapid upward channel with a prospecting development. Countries around the world have established proper ESG evaluation systems and information disclosure systems, which provides investors with key investment information, and forces companies to improve their own rules, regulations and behaviors. This paper also explores whether ESG investment has significant excess returns for the broader market by means of literature integration and empirical testing. Lastly, this paper summarizes the current mainstream investment strategies and studies their applicability in the stock and bond markets, putting forth suggestions for policies and rating systems.