China's 1st SRI fund to be launched soon

China is expected to launch its first mutual fund to invest in the country’s "socially responsible" enterprises by the end of the month, market sources reported.

The Shanghai-based Industrial Fund Management won approval from regulators for the fund launch, but it was advised to reduce its estimated size amid weak market sentiment.

The fund is expected to invest between 65% to 95% of its total capital in equity, and approximately 30% in bonds. Its target size would be at least RMB 100 million, the fund management said.

Industrial Fund Management disclosed that the decision to launch the fund arose from its notice that many Chinese companies were, for the first time, issuing corporate social responsibility reports in addition to their annual financial results.

In addition, it noted that the fund would not be specifically confined to the area of social responsibility as it was the first fund of this kind in China.