Core Viewpoint - The establishment of the Rongtong Zhongzheng Chengtong Central Enterprise ESG ETF and its linked fund marks a significant milestone in China's public ESG investment landscape, with a record issuance scale of 9.6 billion yuan, highlighting the growing importance of ESG themes in investment strategies [2][11]. ESG Investment Growth - The global ESG fund market has surpassed 35 trillion USD as of mid-2023, with projections indicating it could exceed 40 trillion USD by 2030, reflecting the increasing recognition of ESG investment principles among mainstream investors [3][7]. - In China, the ESG investment philosophy is gaining traction, supported by strong policy initiatives from regulatory bodies, leading to a rising disclosure rate of ESG reports among A-share listed companies, reaching approximately 46% in 2024 [7][8]. Historical Context of ESG - The ESG concept emerged in the 1960s and 1970s, influenced by various social movements, and gained formal recognition in 2004 when the UN Secretary-General invited financial institutions to integrate ESG factors into investment decisions [4]. - Over the past 18 years, the State-owned Assets Supervision and Administration Commission (SASAC) has progressively enhanced requirements for central enterprises regarding social responsibility and ESG reporting [4]. Investment Philosophy - ESG is increasingly viewed as a critical evaluation framework that transcends mere financial metrics, emphasizing the importance of corporate governance, sustainability, and social responsibility in investment decisions [5]. - The philosophy of "capital for good" is becoming a foundational logic for value creation, as investors recognize the long-term implications of ethical corporate behavior [5]. Product Innovation and Strategy - The Rongtong Zhongzheng Chengtong Central Enterprise ESG Index employs an innovative ESG scoring method rather than traditional market capitalization weighting, prioritizing companies with the highest ESG scores from central enterprises [10]. - The index focuses on strategic industries such as power equipment, new energy, and telecommunications, while also including innovative small-cap companies, balancing national strategic priorities with market potential [10]. Performance Metrics - ESG investment strategies have demonstrated significant outperformance, with the annualized average return of the dividend ESG integration strategy reaching 35% as of mid-2023, significantly outperforming traditional benchmarks [8]. - The Rongtong Zhongzheng Chengtong Central Enterprise ESG ETF and its linked fund have shown strong performance metrics, contributing to the overall growth of the ESG investment landscape in China [11]. Future Outlook - The Rongtong Fund aims to continuously enhance its ESG product offerings, supporting the integration of social responsibility into investment practices, thereby creating a closed-loop ecosystem of "responsible investment - value creation - social progress" [11][19]. - The company is committed to long-term value creation, positioning itself as a sustainable player in the capital market, with aspirations to become a "evergreen tree" in the investment landscape [19].

Group 1 - The core viewpoint emphasizes that state-owned fund companies should align with national strategic directions and leverage their professional advantages in capital markets to support enterprises' green transformation needs, thereby promoting high-quality development of green finance [1][3] Group 2 - In recent years, the company has actively explored and innovated in ESG and green financial products, launching the first central enterprise ESG thematic index in China in 2017, which has achieved positive returns for six complete years out of over eight years of operation, with an absolute return rate of 80% [3] - The company has issued the Rongtong CSI Chengtong Central Enterprise ESG ETF in 2024, with a current fund size of 500 million [3] - The company believes that investment and financing are complementary, and financial institutions should consider the different stages of enterprises' life cycles to flexibly use various financing tools to achieve a positive interaction between green transformation and financial support [3] Group 3 - The company is currently collaborating with banks to actively develop and apply for ESG-related bond products, with plans to continue optimizing the supply of financial products and increasing the development of green financial products [3]