We examine the influence of environmental, social, and governance (ESG) ratings on the performance and performance persistence of ESG mutual funds in China. Utilizing 281 Chinese ESG funds from 2009 to 2023, our results indicate a significant positive relationship between ESG ratings and fund performance, as gauged by Carhart's four-factor alphas. Notably, the Chinese ESG funds exhibit performance persistence for up to four quarters. In addition, performance persistence is more pronounced in funds with higher ESG ratings, larger total net assets, higher inflows, lower turnover, lesser expenses, and longer manager tenures than other funds. Our findings are robust when assessed with nonparametric persistence measurements and utilizing alternative 1-, 3-, and 5-factor alphas. Two-stage least squares regression analyses also address the potential endogeneity between ESG ratings and fund performance.