Assets of climate-focused mutual funds and ETFs in China declined by 16% to $37.6 billion in 2023, despite a 50% increase in inflows to $3.4 billion. The decline in assets and launches is attributed to speculative trading and volatility in the market. China's CSI 300 Index lost 11% in 2023. New fund launches fell 44% to 36 in the same period [ee1a7b4d].
Globally, assets in climate funds rose by 16% to $540 billion, with Europe accounting for 84% of these assets. Flows into climate funds reached $40 billion globally in 2023, representing the lowest level in four years. Climate transition and Paris-aligned funds are expected to evolve as investors scrutinize companies' transition plans and demand better management of climate risks [ee1a7b4d].