China's ESG rating becomes a big concern for investors

China's ESG scores are China's among the lowest in the world which could become a concern for investors who wish to increase their exposure to the country's economic revival after the COVID-19 pandemic, AsianInvestor reported.

As per the news report, China's Environmental, social, and corporate governance (ESG) rating and its obfuscation on ethnic repression and forced labour in the western regions of the country are the issues faced by the country. The sudden opening up of China after the severe lockdowns and mass migration taking place ahead of the Chinese New Year also poses serious questions about health security, as per the news report.

Aidan Yao, the senior emerging Asia economist at AXA Investment Managers in Hong Kong, has called the lack of pandemic data a cause for concern for the market. Yao stressed that the termination of daily data on COVID-19 cases and deaths has left the market in the dark.

Aidan Yao further said, "the economy is living its darkest hours. Q4 GDP, due out in two weeks' time, should show a distressing end for the economy in 2022," according to an Asian Investor report. Yao further stated that financial markets seem undeterred by the current economic struggles.