M&G Public Fixed Income - ESG engagement in the China property sector

5 min read 21 Dec 21

At M&G, ESG analysis is considered vital in complementing the traditional credit research undertaken by our analysts, allowing us to gain a more comprehensive picture of the risks affecting a particular fixed income security.

  • We believe that company engagement forms a key part of this analysis, and recently initiated an engagement process with companies in the Chinese real estate sector.
  • We think that closer ESG engagement with these companies – many of whom are significant bond issuers – will ultimately help us to enhance risk-adjusted returns for long-term bondholders, particularly at a time when the sector is coming under increasing scrutiny for its rapid, debt-fuelled growth.

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