Jan 18, 2019 (China Knowledge) - Global index compiler FTSE Russell has launched a new index series to track Chinese green bonds. The new FTSE Chinese (Onshore CNY) Green Bond Index Series will benchmark against securities whose proceeds are used to fund environmental projects in mainland China.
The index will be measuring the performance of onshore yuan-denominated fixed income securities issued by the government, agencies and corporates that have been labelled as “green” by their issuer.
Currently, 126 bonds have been included into the main index, covering 75% of all green bonds issued by the Chinese government, agencies and corporates.
Since 2015, China’s domestic green bond market has grown rapidly at a compound annual growth rate of 65%, driven by environmental initiatives supported by the government and is expected to continuing growing quickly over the next few years.
China is now the world’s second largest green bond market with an issuance of USD 48 billion in 2017. This number made up for 23% of green bond issuance that year.
The FTSE Chinese Green Bond Index Series will use prices evaluated by Refinitiv, an independent price provider. The indexes will be rebalanced monthly on the last business day of each month.
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