Bank of China (Hong Kong) Launches Climate-Tailored ETF for Chinese Stocks in Greater Bay Area

Bank of China (Hong Kong) has launched an exchange-traded fund (ETF) that provides climate-tailored exposure to Chinese stocks from the Guangdong-Hong Kong-Macao Greater Bay Area. The BOCHK Greater Bay Area Climate Transition ETF has been listed on the Stock Exchange of Hong Kong in both Hong Kong dollars and Chinese renminbi. The fund is linked to the S&P BOCHK China Hong Kong Greater Bay Area Net Zero 2050 Climate Transition Index, which aims to maintain a broad representation of constituents while satisfying the EU’s Climate Transition Benchmark regulation. The index also seeks to increase the weight of companies with clear science-based carbon reduction targets, reduce overall exposure to physical risks arising from climate change, reduce aggregate exposure to fossil fuel reserves, and increase exposure to companies that derive a larger proportion of their revenue from green activities.