FTSE Russell index to track Chinese green bonds launched

China is now the second-largest green bond market globally, and this index comes as demand to incorporate ESG factors as a core part of investment intensifies


FTSE Russell, the global index, analytics and data provider, has launched a new index series tracking Chinese green bonds. The FTSE Chinese (Onshore CNY) Green Bond Index Series will benchmark securities whose proceeds are specifically used to finance climate or environmental projects in mainland China.

The index will measure the performance of onshore Chinese yuan-determined fixed-rate government, agency and corporate debt issued that are labelled 'green' by the issuer. There are currently 126 bonds included in the main index, covering around 75% of all on-shore labelled green bonds issued by China's government, agencies and corporations.

The FTSE Chinese Green Bond Index Series use evaluated prices from Refinitiv, an independent price provider. The indexes will be rebalanced once a month on the last business day of the month.

Waqas Samad, CEO Benchmarks, FTSE Russell, says: "In 2017, China green bonds issuance represented 23% of global green bond issues and the market is expected to continue to grow significantly over the coming years.

"The combination of FTSE Russell's strong capabilities in fixed income, sustainable investment and regional presence in China allow us to develop innovative tools to help meet the growing demand from our global customer base."

FTSE Russell launched its first China bond indexes in 2011. Recent regulatory changes have driven growth in environmental initiatives supported by government subsidies and investment opportunities. Since 2015 China's domestic green bond market has grown significantly, with China now the second-largest green bond market globally.


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22 Jan 2019


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