CUFE-CNI Chinese domestic Green Bond Index Series

A Chinese domestic green bond index displaying in Europe

LuxSE and the Shenzhen Stock Exchange (SZSE) partnered in 2017 to launch the first green bond index that synchronously displays quotes in China and Europe. The new index series tracks the performance of labelled and unlabelled Chinese green bonds used to finance environmentally-friendly projects.

The CUFE China High-level (CUFE-CNI) Green Bond Index Series was developed jointly by the Shenzhen Securities Information Co., Ltd (‘SSI’) and the International Institute of Green Finance (‘IIGF’), part of the Central University of Finance and Economics (‘CUFE’) in Beijing.

The index series is made up of three different indices that reflect the value of green bonds issued and settled in the inter-bank and stock markets in Shenzhen and Shanghai. The indices aim to provide greater transparency and facilitate access to green securities for investors in Europe.

Composition of the CUFE-CNI Index Series

The CUFE-CNI Green Bond Index Series contains the following four indices:  

Bridging the gap between China and Europe

Chinese domestic green bond index series criteria

All securities on the indices are in line with the Green Bond Endorsed Project Catalogue (2015, China Society for Finance and Banking Green Finance Specialized Committee), which recognises the following six environmental sectors eligible for financing via green bonds:

• GB1：Energy Saving;
• GB2：Pollution Prevention & Control;
• GB3：Resource Conservation and Recycling;
• GB4：Clean Transport;
• GB5：Clean Energy; and
• GB6：Ecological Protection and Climate Change Adaption

Securities that allocate use of proceeds to at least two of the above categories are also eligible. A bond will also be treated green if at least 95% of the issuers’ revenue comes from the environmental sectors.

Disclaimer

For the purposes of the present note, “BMR” means Regulation (EU) 2016/2011 of the European Parliament and the Council of June 8, 2016 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds, as amended or supplemented from time to time.

The CUFE-CNI High Grade Green Bond Index, CUFE-CNI High Grade Unlabelled Green Bond Index and CUFE-CNI High Grade Labelled Green Bond Index (the “Indices”) are proprietary and privilege data of Shenzhen Stock Exchange (“SZSE”). SZSE has appointed Shenzhen Securities Information Co. Ltd (“SSIC”) to be its index business agency. Although SSIC has made its best efforts to ensure the accuracy of the Indices and all related information (collectively the “Information”), SSIC cannot guarantee the accuracy, timeless or completeness of the Information. The Information is made available for general information purposes. It cannot be disseminated, displayed, sold or distributed, in any manner, in whole or in part, freely or against payment, without the prior written consent of SSIC. Neither SZSE nor SSIC are registered  or authorized as benchmark administrators in accordance with art. 3(6) of BMR. 

The Indices shall, in no event, be used or considered, directly or indirectly, in whole or in part, as benchmarks (as defined by art. 3(3) of BMR – as defined below). You are strictly prohibited from using, allowing or facilitating the use of the Indices for the following purposes:

• Determine the value or price at which a financial instrument may be bought, sold, traded or redeemed;
• Determine any amount or interest payable in relation to financial contracts or instruments;
• Measure the performance of financial instruments (e.g. investment funds); and/ or
• Define the asset allocation of a portfolio.

The Information is not tailored for specific investors’ situations and may therefore not be suitable for you. The Information is not and shall not be a substitute for your own researches, investigations, verifications, checks or consultation for professional or investment advice. You are using the Information at your own risks.

Although the Indices and the Information are displayed on its website, Luxembourg Stock Exchange (“LuxSE”) cannot and shall not be considered as (i) endorsing the Indices (in the sense of art. 33 of BMR) and (ii) acting in any manner as attorney, agent or representative of SZSE or SSIC. LuxSE does not give any representation or warranty and disclaims any liability or responsibility of any kind in connection with the accuracy, correctness, timeliness, fitness for a particular purpose, reliability or completeness of the Information. LuxSE does not accept any liability or responsibility of any kind for any loss or damages arising directly or indirectly from the use of, or any action refrained or taken on any Information. The Information does not constitute and is not construed as any advice, solicitation, offer, endorsement, commitment or recommendation on behalf of LuxSE to (i) invest in any financial instrument and/ or (ii) follow or use the Indices as a benchmark or reference. The publication of the Information by LuxSE does not represent or constitute any warranty or representation from LuxSE in connection with the good standing, profitability, suitability or reliability of any financial instrument and/ or of the Indices. LuxSE cannot represent or warrant that the Information will be updated, displayed or made available in real time and/ or without any delay.

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