ESG investment, as an investment strategy based on corporate social value investment, has gradually become focus of the international investment market. ESG investment is still in a rapid development stage in China, and market rules research and regulatory mechanism construction are still in the exploratory development stage. The article systematically analyzes the current development progress and innovation of ESG investment practices in China, analyzes the policy progress and development direction related to ESG investment funds, as well as the key problems faced by the ESG investment fund industry. And then the study proposes countermeasures and suggestions to promote investment concept penetration, improve information disclosure quality, accelerate investment method innovation, and explores a unified valuation system and deepen research on ESG monetization measurement.