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In the ever-evolving world of finance, a new investment opportunity has emerged that caters to those seeking exposure to the Chinese market while prioritising sustainable investment principles. The BNP Paribas Easy MSCI China Select SRI S-Series 10% Capped UCITS ETF, managed by Alban Ribault and Paul Huberlant of BNP Paribas Asset Management Luxembourg, offers just that.

The ETF's primary focus is on managing the portfolio with a concentration on Chinese equities, incorporating social responsibility criteria, and ensuring diversification by capping individual holdings at 10%. This strategic approach allows for investments in major Chinese companies like Tencent and Alibaba, providing a unique blend of sustainable investment principles and exposure to the Chinese market.

The ETF adheres to stringent exclusion criteria, with bonds rated below BBB by MSCI ESG or those violating the United Nations sanctions list being excluded from the ETF. This rigorous selection process leaves approximately 20,000 out of the original 27,000 bonds for inclusion.

The underlying bond index for the ETF is the Bloomberg MSCI Global Aggregate Sustainable and Green Bond SRI, encompassing bonds from over 70 countries and more than 30 currencies. This broad scope ensures a diverse investment portfolio that spans the globe.

The BNP Paribas Easy MSCI China Select SRI S-Series 10% Capped UCITS ETF is classified under Article 8, SFDR, indicating a focus on sustainable investments that have a positive impact on environmental or social characteristics, without necessarily having a significant negative impact on returns.

For those interested in an ESG-compliant version of the iShares Core Global Aggregate Bond UCITS ETF, managed by Blackrock, the iShares Global Aggregate Bond ESG UCITS ETF is an alternative to consider.

The BNP Paribas Easy MSCI China Select SRI S-Series 10% Capped UCITS ETF can be identified by the ISIN codes IE000U6US1Q0 (dollars) and IE000APK27S2 (Euro-hedged).

If you have subscribed to this ETF but have not received a confirmation email, it is advised to check your spam folder for the confirmation. With its focus on Chinese equities, stringent exclusion criteria, and commitment to sustainable investment, the BNP Paribas Easy MSCI China Select SRI S-Series 10% Capped UCITS ETF presents an exciting opportunity for investors seeking a balance between financial returns and social responsibility.