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Analysis on the Investment value of Yinhua carbon Neutralization ETF Fund: sharing the dividend of low-carbon economy

華西證券 ·  Jul 6, 2022 19:06  · Researches

Climate warming is becoming more and more serious, low-carbon goal has become a human consensus. In order to deal with climate change, carbon reduction, carbon neutralization and other low-carbon strategic goals have become the consensus of human society. From 1992 to 2015, the United Nations Framework Convention on Climate change, the Kyoto Protocol and the Paris Agreement were successively signed.

A number of countries and regions around the world have proposed policies or legislation on carbon neutralization and announced a timetable for carbon neutralization.

There is a huge space for carbon emission reduction in China under the dual-carbon strategic goal.

China has put forward the goal of reaching the carbon peak by 2030 and achieving carbon neutrality by 2060, which reflects the determination to improve global climate governance.

China's carbon dioxide emissions in 2019 are 9.877 billion tons, of which electric power thermal production, industry and transportation are the main carbon emission sectors, accounting for 58%, 28% and 9%, respectively. Promoting the transformation of energy structure and the transformation from traditional fuel vehicles to new energy vehicles is an important way to reduce carbon emissions.

The mainland low-carbon index is the target of high-quality investment in low-carbon economy.

The installed capacity of clean power in China is growing rapidly. According to the plan, during the 14th five-year Plan period, the increment of renewable energy generation will account for more than 50 percent of the electricity consumption increment of the whole society, and wind power and solar power generation will double.

Driven by the policy of accelerating electrification, the sales of new energy vehicles in China have also entered a period of explosive growth. In the first five months of 2022, the retail sales of new energy vehicles in China reached 1.71 million, an increase of 118% over the same period last year. The popularity of new energy vehicles has greatly increased the demand for power batteries.

CSI mainland low-carbon economy theme Index (referred to as: mainland low-carbon), mainly composed of new energy power equipment, power batteries, energy conversion and storage and other business areas, is a high-quality target for investing in low-carbon economy.

Since 2020, in the context of the policy goal of carbon neutrality, the low-carbon economy has ushered in a great development. 2020Universe 22022lap30, the index rose 156.70%, substantially outperforming the market benchmark.

Yinhua carbon Neutralization ETF Fund shares the dividend of low-carbon economy development Yinhua carbon Neutralization ETF Fund (fund code: 562300), listed on the Shanghai Stock Exchange on January 5, 2022, closely tracks the CSC mainland low-carbon economy theme index and shares the dividend of low-carbon economy development.

Risk hint

The research and analysis of fund products and indexes in this report are based on historical public information, which may be deviated by the changes of index sample stocks; the future performance of the index is affected by multiple factors such as macro environment and market fluctuations. There is a certain risk of volatility.

The translation is provided by third-party software.


The above content is for informational or educational purposes only and does not constitute any investment advice related to Futu. Although we strive to ensure the truthfulness, accuracy, and originality of all such content, we cannot guarantee it.
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