UK-based index compiler FTSE Russell has extended its coverage of China’s bond market with the introduction of 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 fund climate or environmental projects in mainland China, a statement from the global index provider said.
At present, there are 126 bonds in the main index, accounting for about 75% of all green bonds issued by the Chinese government, agencies and corporations.
Waqas Samad, chief executive officer for FTSE Russell’s benchmarks said: “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.” According to the index compiler, green bonds totalling $37 billion were issued in 2017.
Samad added: “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.”
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