China Green Bond Market Annual Report: 2017
On Thursday 8th Feb, Climate Bonds Initiative and China Central Depository & Clearing Co. Ltd (CCDC) with the support of HSBC launched the China Green Bond Market 2017 report, in Hong Kong followed by a Friday mainland launch in Beijing.
The new report summarises the major developments that have taken place during the year, focusing on green bond issuance, policy development and wider market growth.
The latest figures show total green bond issuance from China reached USD37.1bn (RMB248.6bn) in 2017, 4.5% up on the previous 2016 record. Of this total, USD22.9bn (RMB 154.3bn) issuance is aligned with international definitions, accounting for 15% of the USD155.5 global green bond record for 2017 and making China the second largest green bond market in the world.
Download the full report in English.
Download the full report in Chinese: 点击下载中文报告
118 green bonds were issued during 2017 (113 onshore, 5 offshore).
USD37.1bn (RMB248.6bn) green bonds were issued, of which 62%, or USD22.9bn (RMB 154.3bn), aligned with international definitions.
USD6.01bn (RMB40.2bn) of issuance was Climate Bonds Certified, including the USD2.15bn debut green bond from Industrial & Commercial Bank of China (ICBC) the worlds’ biggest bank.
The largest cumulative issuer in the year was China Development Bank (CDB) which included a Climate Bonds Certified offshore bond of USD1.67bn (RMB 11.1bn).
Regulatory momentum, green finance developments & harmonisation
Policy support continued with several new developments in 2017, including:
China Securities Regulatory Commission (CSRC) issued green bond guidelines for Chinese listed companies;
Green Finance and Ecological Protection were included into the 2017 Government Work Report;
The Fifth National Financial Work Conference encouraged development of green finance;
New guidelines for verifiers were released by PBoC and CSRC in December;
The State Council set up pilot zones in Guangdong, Guizhou, Jiangxi, Zhejiang and Xinjiang to promote green finance;
Four Ministries, jointly issued ‘Guidance on Promoting Green Belt and Road’, signalling a boost for green infrastructure.
China is also working towards harmonizing local green bond guidelines with those of international markets. In November 2017, China’s Finance Committee, operating with the support of the PBOC, and the EIB launched a White Paper providing an international comparison of several green bond standards. This represents a first step towards achieving harmonised green bond definitions between China and the EU.
It's also worth reminding Blog readers that Hong Kong has signaled a sovereign green bond this year and amongst new policy measures to promote green finance.