Industrial Fund Management has been approved by the China Securities Regulatory Commission to begin the first socially responsible investment product in China.
It will be issued through eight Chinese banks and other securities companies on March 28. The most prominent feature of the SRI is that it will be mainly used for investing into socially responsible listed companies.
The company may face problems initially as it attempts to delve into the murky acocunting of some companies, even some of those that are listed. And because many Chinese companies' definitions of corporate social responsibility place emphases on charitable giving rather than true environmental sustainability or labor rights, the fund may have some surprises in the future.
