Chinese funds focused on environmental, social and governance recorded net outflows of $1.4bn in the second quarter, marking an even sharper slowdown than sustainable funds elsewhere in the region.
ESG funds in the Asia-Pacific region, excluding Japan and China, suffered a second consecutive quarterly decline in net inflows, attracting just $929mn during April to June, down from $1.27bn in the first quarter, Morningstar noted in its latest sustainable funds report.
Taiwan raked in the most net inflows for the quarter at $911mn, while Hong Kong had $129mn. South Korea, India and Indonesia had the biggest net outflows apart from China in the second quarter among regional markets.