China Central Depository & Clearing’s domestic green bond indices are now available on the Luxembourg Stock Exchange
- The Luxembourg Stock Exchange (LuxSE) and China Central Depository & Clearing (CCDC) launch cooperation to simultaneously display prices of CCDC’s three domestic green bond indices.
- The indices reflect the performance of Chinese domestic green bonds in RMB that support projects in China, including clean transportation and green finance.
The index-display agreement between the Luxembourg Stock Exchange and China Central Depository & Clearing will facilitate greater transparency and enhance access to information related to Chinese domestic green bonds for investors in international markets. CCDC will display three indices on LuxSE: ChinaBond China Green Bond Index; ChinaBond China Green Bond Select Index; and ChinaBond China Climate-Aligned Bond Index.
The aim of the cooperation is to contribute to measuring the rapid growth of China’s green finance market and engage not only local, but also international investors, as they gain access to information on the market indicators. The expansion of China’s market for sustainable finance is a consequence of the government’s increasingly strong commitment to addressing the environmental challenges caused by the country’s energy-intensive economic boom of the last 10 years.
“Climate change requires international cooperation to help developing countries move toward a low-carbon economy. China is already the world’s number one green bond market, and a country seriously committed to tackle climate change. For LuxSE, the number one international green bond platform, our cooperation is a logical step,” commented Robert Scharfe, CEO of LuxSE, at the signing of the agreement in Shanghai.
CCDC is the Central Securities Depository in the inter-bank bond market, as well as the primary depository for commercial bank book-entry government bond transaction. CCDC is approved by the State Council in China.
In 2017, LuxSE signed a similar domestic green bond indices display agreement with the Shenzhen Stock Exchange and in January 2018, with the Shanghai Stock Exchange.