Looking back on 2019, the bull market in the first quarter seems to be a retaliatory rise in 2018. It seems like the money for the Hong Kong stocks during the Spring Festival is money. If you can sing all the way, it must be a happy ending. However, under the internal turmoil and the external Sino-US trade game, the current situation in Hong Kong is already erratic and confusing. In this dark cloud, the dark and dark confrontation of the Hong Kong stock market, flash collapse, short selling, chaos, corruption and other negative The uproarious news has cast a shadow over the future development of the Hong Kong stock market. How did Hong Kong, the Asian financial center with its most splendid scenery, come to today's domestic and foreign difficulties? Can Hong Kong shine like the sun and regain its golden brilliance?
All along, RGF has been actively investing in the research of ESG investment, and believes that ESG investment can promote the enterprise from a single pursuit of maximizing its own interests to the pursuit of social value maximization. RGF's investment in ESG does not just stay in theoretical discussion, but supports ESG's investment concept with practical actions. It first launched the first series of corporate social responsibility index listed on the Hong Kong main board on Thomson Reuters. RGF believes that making money is not the whole meaning of an enterprise. An enterprise with a high degree of social responsibility is an enterprise that can bring happiness to mankind and an enterprise striving for social well-being.
The fulfillment of corporate social responsibility can effectively protect the reputation of the enterprise and obtain more positive social evaluation for the enterprise. The enhancement of reputation can further attract public attention to socially responsible consumption, enhance the competitiveness of enterprises in the product market, and enhance the value of enterprises. Enterprises that actively participate in social responsibility activities will make more information content and more extensive disclosure, thereby promoting the correct pricing of enterprises in the capital market. In addition, companies with higher risk awareness not only are more comprehensive in the design of internal risk control systems, but also are more cautious when making investment decisions, which will increase the stability of their investment and management.
Michael Porter, the father of competitive strategy, a famous professor at Harvard Business School, one of the few most influential management scientists in the world today. The strategic corporate philanthropy theory he advocated-corporate philanthropy, while generating social benefits, can also effectively improve corporate competitiveness. One is to improve the education and training situation and provide enterprises with a large number of high-quality labor reserves; the second is to improve the living standards of local residents of the enterprise, which has a strong attraction for specialized talents; the third is to effectively improve the level of local research and development institutions, administrative institutions Infrastructure quality and natural resource production efficiency. From the perspective of related and supportive industries, strategic philanthropy can promote the further development of clusters and supportive industries. For example, American Express, through supporting tourism and other supportive industries, while undertaking social responsibilities, is also more competitive Benefit from the strength of tourism enterprises.
On August 19, 2019, the CEOs of 181 top US companies jointly signed the "Declaration of Company Purpose" at the "Business Roundtable" of the US business organization, and declared that the company ’s first task is to create a more A good society. The document restructures the priorities of the core objectives of the company ’s operating model, reforms the basic content of the company ’s business commitments based on the maximization of shareholders ’rights, and redefines it as“ the company ’s Have a common commitment. " With the current path of sustainable development becoming a global consensus, the rapid growth of sustainable financial-related assets has become a mainstream international trend and a new outlet for investment.
According to the statistics of the Global Sustainable Investment Alliance (GSIA), in the past three years, the assets of developed countries ’capital markets integrated into ESG ’s investment philosophy have reached double-digit annual growth rates. 38% in the US, 46% in Australia and New Zealand, and 307% in Japan. Europe has a large base and has recorded an average annual growth rate of 11%. In total, the asset size of Europe's integration into the ESG investment philosophy is 12.3 trillion euros, accounting for 48.8% of the asset management market; the US scale is also approaching US $ 12 trillion, accounting for 25.7% of the asset management market.
For decades, responsible investment is changing from the initial "niche preference" to "popular popularity", while maintaining high-speed and healthy development while increasing the value of investment. UN PRI data shows that as of August 2018, a total of 2031 institutions (including asset owners, investment management institutions and service providers) in 66 countries around the world have become PRI signatories, an increase of 17.7% over the previous year. The average annual growth rate from 2006 to 2018 was 43%. In terms of asset management scale, the total assets covered by the 2031 institutions that have been signed up to 81.7 trillion US dollars, with an average annual growth rate of 23.5%. It can be seen that from 2006 to the present, the scale of responsible investment asset management has maintained rapid growth.
Today, with multiple changes in the economy, technology, society, etc. coming together in the same era, whether it is based on the unequal income and wealth, the decline of social mobility, or the common vision of social sustainable development, we have compassion, human care, and innovation. Spirit is the social sentiment that most investors pursue together. RGF also believes that the happiness brought about by making money is not the only meaning of investors' investment. Happiness is just an emotion that exists at this moment, and eventually it will dissipate like other emotions. These positive effects and emotional pleasures are fleeting. The meaning of life is enduring. It connects the past, present and future. If life has its meaning, then the pain experienced must also be meaningful. For investors, the interests of shareholders are indeed important, but they hope that their investment preferences are in line with their own lifestyles and value systems. They are even willing to give up higher monetary returns in return for this investment preference in exchange for more social returns. Perhaps this investment preference cannot have the best return on investment, but it can bring comfort and stability to investors.
In April 2019, RGF embraced the good hope for a high socially responsible enterprise, adhering to the original intention of investors to pursue the meaning of life. In the face of the high point of the Hang Seng Index of 30,000 points, we overcame the fear of hesitation and determined Admission. The Sodata combination ushered in a wave of N-shaped roller coaster prices on the Hong Kong stock market. The Sodata combination was like a boat drifting in the wind and rain. When Hong Kong stocks fell by 5,000 points, we still did not change our minds. We firmly believe that the Sodata combination can lead the way when Hong Kong stocks are in trouble.
The closing of the Hong Kong stock market on December 31, 2019 resembled a dash, extending the unfinished hopes of 2019 to 2020. It is hoped that Hong Kong stocks will wash away the haze of the past in 2020, the tide will be broad and the wind will be sailing. I also hope that Hong Kong's current situation will usher in the night of the sea, and Jiang Chun will enter the old year.
Although the growth rate of the Hang Seng Index in 2019 is at the end of the global stock market increase, but relying on the perfect system of the Hong Kong capital market, the interconnection mechanism of the mainland capital market, and the reform of the listing system, the Hong Kong Stock Exchange will continue to be the champion of global new fund raising in 2019. Medium highlights toughness. Compared with the Hang Seng Index HSI, the performance of the Sodata portfolio is not inferior, showing the ability of highly socially responsible companies to withstand uncertain market environment risks, and also showing their stable corporate profitability, which proves that Sodata investment is indeed Indeed, while meeting the investor's requirements for social responsibility, it can also achieve good long-term investment returns.
