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"China faces very severe challenges in control and prevention of ASF, and any laziness may result in the spread or even local prevalence of the disease," the ministry said.

"But we believe the Chinese government still has room for policy adjustments to mitigate risks, and we expect more reform efforts to transition the economy toward a more sustainable growth path."

"China has a high savings rate. It used to be a huge advantage, but we'll lose that advantage if borrowing grows faster than savings," he added.

"China is playing an increasingly important role due to the sale of hearing solutions via private specialist stores and retail chains, he said, adding the country shows a vast potential in market penetration as an estimated 70 million people in the country suffer from hearing loss, but a mere 5 percent own hearing aids.

"By setting up this portfolio, we hope to develop a proof of concept that over time we will mobilize other like-minded investors to join us in cultivating an ESG market in Asia," Lee said.