ESG: China takes a cue from Europe’s CSRD

On February 8, 2024, in the wake of the European CSRD, China announced new ESG regulations for 400 of the largest Chinese companies. China is thus hoping to boost investment confidence of foreign investors, as foreign investment fell to 30-year low last year to US$33 billion, down by 82% year-on-year (Administration of Foreign Exchange). Meanwhile, shares of Chinese companies continued to plummet last year (MSCI China index was down by 11% in 2023, from a +70% peak in 2021).

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