Luxembourg Stock Exchange in green bond deal with Shanghai Clearing House

Luxembourg Stock Exchange has agreed to set up with the Shanghai Clearing House a mechanism allowing international investors easier access to China's green bonds

The Luxembourg Stock Exchange's headquarters. Credit: CIW1 / Shutterstock.com
The Luxembourg Stock Exchange's headquarters. Credit: CIW1 / Shutterstock.com

Luxembourg Stock Exchange (LuxSE) has agreed to set up with the Shanghai Clearing House a mechanism allowing international investors easier access to China's green bonds. 

In a memorandum of understanding (MoU), LuxSE is forging a cooperation with Shanghai to close the information gap between international investors and the Chinese Interbank Market (CIBM), the largest green bond market in the world.

The move will facilitate the acquisition of Chinese domestic green bonds by investors located outside China.

CIBM is ranked as the world’s leader in terms of issuance volume in green bonds. With LuxSE’s expertise in green bond information disclosure, and Shanghai Clearing House’s efforts in bringing CIBM to the world, the MoU enhances the international visibility and transparency of Chinese green bonds.

“By signing this MoU, we wish to bridge the asymmetrical 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,” says 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 via Bond Connect. This cooperation will provide strong support for the increasing opening up of China’s interbank bond market.

On 9 March, the Agricultural Development Bank of China 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.

  

Date

29 Mar 2018

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