"Dual Carbon" Industry: Poised to Unleash Growth Potential

  • 2025-07-22

 

With the accelerated adoption of green production methods and lifestyles, the low-carbon industrial chain is expected to continuously unlock growth potential.

In terms of the return on equity (ROE) performance of index constituents, the CSI New Energy Index had the best average performance over the past three years, while the CSI Green Power Index performed relatively modestly. However, based on 2024 forecasts, the CSI Green Power Index shows the most significant improvement, and the top-performing index title is passed to the more energy storage-focused SZSE New Energy Battery Index, with an estimated ROE of 16%.

Looking at net profit growth rates, the three-year compound annual growth rates (CAGR) of the CSI New Energy Index and the SZSE New Energy Battery Index reached 37.2% and 47.9%, respectively. In comparison, although the net profit growth rates of the CSI Green Power Index and the CSI Shanghai Environment and Energy Exchange Carbon Neutral Index were slightly lower, their performance remained impressive. For 2024 forecasts, the growth rates of all four indices are expected to slow down, but the CSI Green Power Index is projected to achieve a 30% net profit growth rate, while the SZSE New Energy Battery Index is expected to reach 24%.

These four "carbon family" indices provide investors with tools to track "dual carbon" assets with different characteristics. Investors can fully assess their risk tolerance based on factors such as investment objectives, time horizon, experience, and financial situation. By understanding the fundamental features of these indices and considering factors like fundamentals and valuations, they can make rational decisions to allocate to one or multiple related index products.

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