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China gets first SRI fund

July 2006

The Bank of China has set up the country's first fund applying SRI criteria. The fund, under the bank's International Investment Managers, will refer to governance and social responsibility polices when making decisions.

Wu Jun, vice-president and deputy investment officer of the investing arm, said: 'The fund emphasizes not only financial performance and earnings growth but also sustainability of the business model, corporate governance, corporate strategy and attitude towards social responsibility.

'Through the act of investment we believe it is possible to promote positive and socially responsible corporate behaviour on the one hand, and achieve long-term capital appreciation for investors on the other.

'There is a lot of support building here in China for investment that benefits society, as well as earning good commercial returns. We expect to see SRI become increasingly prevalent,' Jun added.

Robert Rubinstein, chief executive of Brooklyn Bridge and TBLI Group, which hosted the conference in Bangkok at which the fund was announced, predicts that China will reach the same consumption levels as the USA by 2031: 'At current productivity levels China will need more than the entire world production of oil and coal. It is difficult to see how that can be achieved at all, never mind achieving it sustainably,' he said.



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