Dutch asset manager NN Investment Partners has inked a memorandum of understanding (MoU) with China Asset Management (ChinaAMC) to explore product development using their capabilities in European and Chinese capital markets.

The companies will particularly focus on the development of environmental, social and governance (ESG) offerings.

Both NN IP and ChinaAMC have signed the United Nations-supported Principles for Responsible Investment (PRI).

NN IP will now serve as an adviser to China AMC and will support the Chinese firm in incorporating ESG factors into its investment processes.

The MoU will also serve as a foundation for the companies to partner on opportunities associated with China’s Belt and Road Initiative (BRI).

NN Investment Partners CEO Satish Bapat said: “ChinaAMC’s in-depth knowledge of the Chinese capital markets and NN IP’s long heritage in sustainable investing is a complementary combination that we believe may create long-term value for investors. We are excited to explore an alliance with ChinaAMC, a top asset management company in China in the area of ESG.”

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ChinaAMC CEO Tang Xiaodong added: “ChinaAMC hopes to bring more sophisticated investment strategies into China through cooperation with globally renowned asset management organisations like NN IP. This will provide domestic investors with better investment products and services.

“At the same time, ChinaAMC also hopes to increase the international institutions’ understanding of the Chinese capital markets and the Chinese asset management industry, so that these investors will also have more opportunities to participate in China’s economic development.”