China Starts New Sustainability Rules for Green Funds

China has started new Sustainability rules for investment funds that say they help the planet. The new rules began on June 12. Fund managers have one year to follow all the new steps.

The goal is to help people trust green funds. The rules ask fund managers to show clear proof that their money is going into projects and companies that match their green goals. This can help stop false green claims.

Funds with names like ESG or Sustainable Investment must now follow stronger rules. At least 80% of their money, not counting cash, must match the green plan they promise to investors. They must also check their work each year and use special teams to study environmental and social issues.

China now has 372 green funds with more than $44 billion in assets. Experts say the new rules will help make the market more open and easier for people to understand. They also believe the rules will make it harder for funds to use green names without real green investments.

Experts say the new system is like the one used in the European Union. However, China's rules are still simpler and give fund managers more room to adjust. More rules could be added later as the market grows.

The new plan is expected to give investors better information before they choose a fund. It may also help build trust in China's growing green finance market and support more clean and responsible investment in the future.