Cooperation between the Luxembourg stock exchange and the Shanghai stock exchange specializiruetsya on providing relevant information in English about the Chinese “green” bonds to offshore investors, Bank of China, China the most of globalization and diversification of the Bank providing financial services to clients in mainland China, as well as in 54 countries and regions, will now act as a key partner in the provision of services associated with investors using the green channel of the Bonds.
“We feel privileged that our fruitful relationship with both BOC and SSE allows us to continuously support the internationalisation of China’s green finance market. I think initiatives like ours, to bridge the information gap and connect investors and issuers in full transparency, are of pivotal importance in growing the green finance market and pushing forward the climate transition,” commented Robert Scharfe, CEO of LuxSE, at the signing of the agreement in Shanghai.
China boasts one of the world’s largest bond markets, valued at USD 9 trillion, with a production of green and sustainable bonds in excess of RMB 250 billion (approx. €33 billion). 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.
The Green Bond Channel is a practical solution to help green finance go mainstream and engage not only public, but also private investors. Through the cooperation, LuxSE provides relevant information in English about Chinese green bonds to offshore investors.
China’s USD 9 trillion bond market is the second largest in the world, but only 2% of Chinese bonds are foreign-owned. The agreement will improve efficiency in connecting issuers and international investors. The Chinese-listed green bonds can be traded via existing execution channels.
In March 2018, LuxSE extended the same display service to the Chinese Interbank Market and welcomed the first bond from a Chinese policy bank, the Agriculture Development Bank of China (ADBC).
Key advantages of the Green Bond Channel for issuers and investors:
• Enhanced visibility of securities
• Increased investor base
• Better information connectivity among China and international investors
• Comprehensible information in English available to offshore investors
• Increased transparency of bond information by way of free access to security cards displaying details about the planned use of proceeds, external opinions, among others.