GUANGZHOU, China, Aug. 26, 2024 — The International Energy Agency projects that renewables will surpass coal as the leading source of global electricity generation by 2025, reaching over 42% market share by 2028. This reflects a major shift in the global power mix. China has been at the forefront of this transformation, with renewable power generation capacity exceeding coal-fired electricity in the first half of 2024, capturing 38% of the market share. ^[1] This rapid advancement in the new energy sector has opened up appealing investment opportunities in areas such as clean, renewable energy and the low-carbon transition of thermal power plants and steel manufacturing.

As China’s largest mutual fund manager, E Fund Management (“E Fund”) is committed to serving both domestic and international investors through a range of relevant ETFs, including CSI New Energy ETF (Code: 516090), E Fund Carbon Neutral 100 ETF (Code: 562990), and E Fund CNI New Energy Battery ETF (Code: 159566). The first two are included in mainland China—Hong Kong ETF Connect.

The CSI New Energy Index primarily focuses on clean and renewable energy, with over 70% of its constituents involved in the electrical equipment sector. The SEEE Carbon Neutral Index, on the other hand, is a more comprehensive index. As of 2023, its composition was weighted at 67.2% towards companies engaged in clean, renewable energy and 32.8% in low-carbon transition.

Beyond the new energy industry, China is driving a comprehensive green transformation towards a more sustainable economy, with the electric vehicle industry serving as a prime example. Data from the China Passenger Car Association revealed that in July, retail sales of new energy passenger cars surpassed conventional vehicles, with the monthly penetration rate exceeding 50% for the first time. The CNI New Energy Battery Index is well-positioned to capture this trend, particularly focusing on energy storage system (ESS) battery manufacturing and integration. The only ETF dedicated to this index, E Fund CNI New Energy Battery ETF, aims to capitalize on the growth potential of its index constituents, with an expected net profit growth rate of 22.6% for 2024.

About E Fund

Established in 2001, E Fund Management Co., Ltd. (“E Fund”) is a leading comprehensive mutual fund manager in China with close to RMB 3.3 trillion (US$ 454 billion) under management.^[2] It provides investment solutions to onshore and offshore clients, helping them achieve long-term sustainable investment performance. E Fund’s clients include both individuals and institutions, ranging from central banks, sovereign wealth funds, social security funds, pension funds, insurance and reinsurance companies, to corporates and banks. It is a pioneer and leading practitioner in responsible investments in China and is widely recognized as one of the most trusted and outstanding Chinese asset managers.

Note:

[1] Data from China Electricity Council
[2] As at Jun 30, 2024. AuM includes subsidiaries. Source: PBoC, Wind.

SOURCE E Fund Management