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The rise of sustainable finance in China: ESG funds and regulation

Lin Lin

Capital Markets Law Journal2025https://doi.org/10.1093/cmlj/kmaf015article
ABDC A
Weight
0.48

Abstract

This article examines the emerging ecosystem of ESG (Environmental, Social, and Governance) funds in China, focusing on their classification, regulation, and policy context. It presents a taxonomy of ESG funds in the Chinese market, including public, private, government-guided, and Public–Private Partnership (PPP) funds. It analyses China’s distinctive policy-driven transformation model on ESG, emphasizing its top-down design and the pivotal role of State-owned Enterprises (SOEs), and the use of phased policy implementation. Compared to the European Union’s sophisticated disclosure and taxonomy regime, China requires clearer legal definitions, mandatory reporting mechanisms, and a unified classification system on ESG funds. The crucial future task involves balancing government intervention with market forces to ensure capital is channelled into the real economy’s green transformation. This will be essential for establishing an internationally competitive sustainable finance framework and ensuring capital genuinely supports industrial upgrading and sustainable development.

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https://doi.org/https://doi.org/10.1093/cmlj/kmaf015

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@article{lin2025,
  title        = {{The rise of sustainable finance in China: ESG funds and regulation}},
  author       = {Lin Lin},
  journal      = {Capital Markets Law Journal},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.1093/cmlj/kmaf015},
}

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The rise of sustainable finance in China: ESG funds and regulation

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Evidence weight

0.48

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.41 × 0.4 = 0.16
M · momentum0.63 × 0.15 = 0.09
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.