Top equity funds in Asia are all buying China's green stocks. Here's why

China's push to reach carbon neutrality by 2060 is fueling growth in what is already the world's largest renewables market and a leading one for electric-vehicle automakers and suppliers

What do Asia’s five best-performing $1 billion-plus equity funds for 2021 have in common? They are all betting big on China’s renewables push.

The funds returned at least 40 per cent each by investing in stocks that are part of the renewables and electric-vehicle supply chains, according to data compiled by Bloomberg. The $3.7 billion China AMC Energy Innovation Equity Fund led the pack with total returns of 55 per cent, followed by First State Cinda New Energy Industry Equity Fund and HSBC Low Carbon Pioneer Fund.

China’s push to reach carbon neutrality by 2060 is