Issuing Authority:

Asset Management Association of China

DATE OF ISSUANCE:

June 12, 2026

EFFECTIVE DATE:

June 12, 2026

The Asset Management Association of China (AMAC) has issued the Guidelines on the Application of Sustainable Investment Strategies for Publicly Offered Securities Investment Funds (Trial Implementation) (the “Guidelines”), establishing requirements for the application of sustainable investment strategies by publicly offered securities investment funds. The Guidelines aim to standardize the application of sustainable investment strategies and protect investors’  rights and interests.

The Guidelines define sustainable investment strategies as investment approaches that incorporate environmental, social and governance (“ESG”) and other sustainability-related factors into investment analysis and decision-making. The recognized approaches include negative screening, positive screening and integrated investment.

Under the Guidelines, fund managers applying sustainable investment strategies are required to establish sustainable investment evaluation systems covering ESG dimensions, formulate clear evaluation standards and rules, and regularly assess and optimize such standards. Whilst fund managers may refer to sustainability assessment information provided by third parties, the fund managers remain responsible for their investment decisions.

For funds primarily applying sustainable investment strategies, the Guidelines introduce additional requirements regarding strategy application and disclosure. Such funds must apply specified sustainable investment methods, with sustainable investment strategies covering at least 80% of non-cash fund assets. They are also required to establish performance benchmarks reflecting their sustainable investment strategies.

The Guidelines further encourage fund managers to disclose information regarding the development of sustainable investment evaluation standards and the application of sustainable investment strategies through their official websites or periodic reports. Fund managers applying sustainable investment strategies are also required to establish company-level sustainable investment principles and objectives and participate in the corporate governance of important portfolio companies.

The Guidelines took effect on June 12, 2026. Fund managers whose funds do not comply with the relevant requirements shall make adjustments within the prescribed transition period.

Reference:

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