Luxembourg Stock Exchange (LuxSE) signs a cooperation agreement with Shanghai Clearing House (SHCH) to facilitate access to Chinese green bonds for the international investor community.

  • The two organisations have signed a Memorandum of Understanding (MoU) to set up a long-term cooperation..
  • Their objective is to close the information gap of green bonds traded on the largest green bond market in the world, the Chinese Interbank Market.

The MoU is yet another element of LuxSE’s long-standing commitment to bridge issuers in China interbank bond market with international investors, and facilitate the acquisition of Chinese domestic green bonds by investors located outside China.

China market has a top rank in the world in terms of issuance and trading volume in Chinese domestic green bond. Taking advantage of LuxSE’s expertise in the field of green bond information disclosure, and SHCH’s efforts in bringing China interbank bond market to the world, the MoU between LuxSE and SHCH provides a channel to better introduce this fundamental part of green bond market to overseas investors, by enhancing international visibility and transparency of Chinese green bonds.

“By signing this MoU, we wish to bridge the information gap between Chinese domestic bond issuers and the international investors. As foreseen in the MoU, we will have a special focus on green and sustainable bonds”, comments Robert Scharfe, CEO of LuxSE.

Investors interested in such green bonds can benefit from the cooperation, and make the investment either through direct access or mutual bond market access between Mainland China and Hong Kong SAR (known as “Bond Connect”). Thus, it is also believed that the cooperation will form a strong support for the opening up progress of China interbank bond market.

On March 9, the Agricultural Development Bank of China (ADBC) disclosed its green bond information on Luxembourg Green Exchange (LGX), an international exchange operated by LuxSE. The information about the green bond is now available in English and free of charge on the LGX platform. It is the first time a Chinese domestic green bond issued through Bond Connect, deposited in Shanghai Clearing House and traded in CIBM is displayed on an international exchange.