Your access point to data and information on Chinese domestic green securities listed and traded on the Shanghai Stock Exchange (SSE) or traded on the Chinese Interbank Bond Market (CIBM).
China boasts one of the world’s largest bond markets, valued at USD 11 tn, with green bonds issuances amounting to more than RMB 250 bn. However, the market may appear off-limits to the international investor community due to the difficulties of accessing the right level of information on the traded bonds. By displaying information about Chinese domestic green bonds traded either on Chinese exchanges or on the Chinese Interbank Bond Market (CIBM), LGX is bridging the information gap between Chinese issuers and international investors. Green bonds listed on the Shanghai Stock Exchange can be traded via existing channels. The cooperation with LuxSE focuses on providing exhaustive information in English to offshore investors.
Depending upon the nature of the Chinese domestic issuer, they are subject to different green bond guidelines which will define what constitutes eligible projects to be financed by a Chinese domestic green bond. The following guidelines exist:
- Green bonds issued by financial entities are subject to the People’s Bank of China (PBOC) Green Bond Endorsed Project Catalogue
- Green domestic corporate bonds, (and in general non-listed companies), are subject to the National Development and Reform Commission (NDRC) Green Bond Guidelines
- Green bonds issued by listed companies and corporate asset-backed securities are subject to the China Securities Regulatory Commission (CSRC) Guidelines for Supporting Green Bond Development
Note that (as per CBI
) the PBOC Green Bond Endorsed Project Catalogue accepts retrofits of fossil fuel power stations, clean coal and coal efficiency improvements, and rail lines that mainly transport fossil fuels, which are not accepted under the Climate Bonds Initiative’s eligibility taxonomy.
In an effort to help bridge the gap between Europe and China, the world’s two largest green bond markets, the Luxembourg Stock Exchange with several Chinese partners decided to display Chinese domestic indices. The indexes’ visibility and accessibility allow international investors to monitor the performance of Chinese securities.