JP Morgan launched in Mexico its ETFs focused on reducing the carbon footprint of Chinese companies, with ticker symbol JCCT, the Carbon Transition China Equity it would be the first financial vehicle that would monitor the energy transition of the Asian giant.
In its commitment to the Mexican market, JP Morgan List your product on the Institutional Stock Market (BIVA)which seeks to minimize carbon emissions by 30% through investment in sustainable companies.
He ETFs would open at a price of 500 pesos, made up of 170 stations from the Hong Kong Stock Exchangeall committed to the goal of reducing their carbon footprint and with a business leadership focus on the energy transition.
through the Artificial intelligencethe ETF would seek to identify which companies will be the winners of the energy transition in China.
“Many sustainable ETFs are made on more aggregate indices, there is another ETF of the same type for the US market, but this ETF innovates by giving it exposure to the Chinese market,” said Juan Pablo Medina-Mora, head of the JP Morgan Asset Management business.
“Today the emerging capital market represents 12% of global shares, and China represents a third of those markets,” added the expert.
The instrument would be intended for all kinds of investors, “because the commission that the ETFs charge a large institutional investor is the same as it would charge a retail investor”, detailed the JP Morgan panelists.
The equity was also approved by the Mexican Association of Afores (amafore), so it is already an asset susceptible to investment in retirement fund managers (Afores).
Carlos Brit, business manager ETFs of JP Morgan In Latin America, he mentioned that China produces two thirds of the solar panels used in the world, they also manufacture 80% of the turbines used to generate wind energy and that they occupy the first position in the market for electric vehicles
“Increasingly, the Chinese economy is based more on domestic consumption, but when a country migrates towards domestic consumption, it gives a more stable growth dynamic,” explained Juan Pablo Medina-Mora.
Carlos Brit said that although they do not have an estimate for the returns of the ETFs, long-term return expectations in the Chinese market are above the US equity market. “On average it would be 7 or 8 percent,” he said.
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