FTSE Russell launches Chinese green bond indices

China was responsible for issuing some £37 billion of green bonds in 2017


Joe McGrath

Index provider FTSE Russell has announced the launch of a new index series tracking Chinese green bonds.

The Chinese (Onshore CNY) Green Bond Index Series will include securities whose proceeds are used to finance Chinese climate or environmental projects.

“In 2017, China green bond issuance represented 23% of global green bond issues and the market is expected to continue to grow significantly over the coming years,” Waqas Samad, CEO of Benchmarks at FTSE Russell said in a statement.

“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.”

This new index is to measure the performance of fixed rate government, agency and corporate bonds which are labelled green by the issuer.

Around three quarters of all available onshore labelled green bonds issued by corporations, agencies and government are included in the index series, totalling some 126 securities in total. China is now the second-largest green bond market globally with £37 billion issuance in 2017.

“FTSE Russell is delighted to extend its coverage of the China bond market with the introduction of a new Chinese Green Bond index series,” Samad added.

The company said that it has responded to China’s decision to open its market to foreign investors, by offering market participants a range of benchmark choices. This, it says, will help them prepare for the inclusion of China A Shares in global portfolios. More information on the full FTSE Russell range is available here.


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