Developing China’s Green Bond Market
Ma Jun, Liu Jialong and Chen Zhouyang

In its 19th Party Congress report, China emphasized that building an ecological civilization is a “millennium project for the sustainable development unto perpetuity.” In this, it stressed the need to construct a market-oriented system of innovation for green technology, to develop green finance, and strengthen energy-saving environmental protection, clean manufacturing, and clean energy.

As such, China attaches great importance to the development of green finance: it is becoming national strategy and the country is giving firm support to green industries. The green bond market, since 2016 the world’s largest, is vital to this green finance system. Since December 2015, when the People’s Bank of China launched green bonds, and the Green Finance Committee of the China Society for Finance and Banking published the Directory of Green Bond Projects, the country’s green bond market has grown rapidly. Innovative products in the last two years have included green covered bonds and green asset-backed securities.

As the regulation and servicing of the green bond market gradually improve and international exchange and cooperation increase, China’s green bond market is incrementally moving from infancy to maturity.

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