Analysis of Financial Investment Strategy of Manufacturing Enterprises under ESG System

Abstract

At present, China is in the context of achieving the goal of "carbon peaking and carbon neutrality". From the perspectives of ESG responsible investment and value investment, this article aims at the investment efficiency of Chinese manufacturing enterprises. The 2018-2022 listed company market data is tested empirically. An efficient frontier is constructed based on Markowitz's theory, and the KMV model is used to measure the credit risk of a portfolio. The research found that: First, the value investment based on the ESG concept has much higher investment benefits than the CSI 300 Index over the same period. Second, corporate social responsibility can be recognized by the capital market, and the credit risk is therefore lower than the market average. The research conclusion of this paper proves that ESG value investment can promote the high-quality development of manufacturing industry. It provides an important policy inspiration for the Chinese government to implement the concept of sustainable development, which will convey the image of a responsible big country to the world.