Through our global ESG integration survey, we wanted to understand how often Chinese investors consider that environmental, social, or governance issues affect share prices and bond yields in the Chinese capital markets in 2017, and how often they believe these factors will impact share prices and bond yields in five years’ time (2022). Corporate governance is currently the ESG factor most impactful to share prices and bond yields, but this dynamic is set to change, according to survey respondents. Environmental factors are likely to impact share prices and bond yields nearly as much as corporate governance will by 2022, according to Chinese financial professionals.

Respondents in China were asked how often ESG risks and opportunities affect share prices and bond yields in Chinese capital markets. As was the case in all markets we visited, ESG risks were seen as more important than ESG opportunities. Corporate governance risks are the main risks for both shares and bonds, while social risks and opportunities are seen as more important than environmental risks and opportunities.