Impact Investing

1. From Niche to Mainstream: Impact Investing in China(Completed)

In this report, we map out the key players in the space and assess the state of impact investing in China. The main conclusion is that impact investing is still a niche approach in China. For the ecosystem to grow, we think that impact investing should be part of the government’s agenda and a national strategy. Moreover, state-owned enterprises and mainstream financial services companies should lead the transition to impact the economy. In writing this report and to understand the social enterprise sector in China, CAFI’s team has visited several enablers in the space.

Please click here to view the report

2. Unlocking the Potential: Harness Impact Investing to Revitalize Rural China (Completed)

In this report, we show 

(1) why rural development is vital for China to achieve sustainable development goals

(2) what needs to be done to revitalize rural China

(3) what key barriers are

(4) why impact investing can help

(5) how to unlock the potential of impact investing

In this report, we show that the lack of human capital is what plagues low-income families in rural China. Although the central government has been providing funds for health and education programs across the nation, it focuses primarily on inputs, not results. Thus, in the report, we make a case for outcome-based financing and introduce the Educate Girl project as an example and other impact contract projects worldwide.

Please click here to view the report

3. Research Project on Impact Investing (Proceeding)

In March 2020, CAFI kickstarted a research project on impact investing. Combing through and scrutinizing pain points and yearnings of various market entities, the project is set to compile practices in China of social impact investing and propose policy recommendations accordingly. Secondary research and interviews were conducted with four types of market entities including mainstream financial institutions, foundations, social enterprises, and nonprofit organizations. In the end of 2020, the study team composed a discussion paper of Research Report on Practices and Policy Studies on Social Impact Investing, and a closed-door expert panel meeting was held on November 29, gathering together leaders from relevant government agencies, industry, and academia. Issues surrounding defining of concepts, quantification, and metrics were comprehensively explored and consensuses reached on the meeting. Further research is currently in progress integrating expert suggestions.