The development of impact investing and implications for China

Abstract

In recent years, impact investing has been developing rapidly and attracting broader attention. According to the JP Morgan and GIIN Annual Impact Investor Survey, the number of global impact investors increased approximately eightfold between 1995 and 2015. While still facing challenges and competition, impact investing represents a significant trend in investment. The concept was brought to China several years ago but is still at an early stage. This paper will discuss the development and features of impact investing, with an analysis of and comparison with the Chinese market, to propose suggestions for its future development. The research in this paper is based on the analysis of recent publications and industry reports, impact investing case studies, and interviews with impact investors and social enterprises. The study also includes analysis of the limitations and difficulties of impact investing globally and in China, with suggestions for future development.