Chinese green bond index series launched
The international institute of green finance (IIGF), part of Beijing’s central university of finance, has teamed up with the Shenzhen Stock Exchange (SZSE) and the Luxembourg Stock Exchange (LuxSE) to launch the CUFE-CNI Green Bond Index Series, the first Chinese green bond index to provide synchronous quotes between China and Europe.
The new index series, launched on 20 March 2017, has been designed as a market benchmark and investment tool for Chinese green bonds.
Jointly developed by Shenzhen Securities Information and IIGF, it consists of three indices: the CUFE CNI High Grade Green Bond Index, the CUFE CNI High Grade Unlabeled Green Bond Index and the CUFE CNI High Grade Labeled Green Bond Index.
The CUFE-CNI Green Bond Index Series will become the benchmark of Chinese green bonds and is characterised by its broad representation of green bonds listed in China and high level of transparency.
According to IIGF’s data, the annualised return of the CUFE CNI High Grade Green Bond Index since 2012 is 5.37%, the average remaining maturity of the latest index samples is 4.78 years, and the coupon rate is 4.4%.
The indices will be displayed on both LuxSE and SSIC’s official websites synchronously.
It seeks to improve the international influence of China’s green finance, draw foreign investors to participate in the construction of China’s green financial system and promote the development of green industry in China.
Commenting the launch, LuxSE chief executive Robert Scharfe said: “Today’s decision to launch and display three new indices tracking China’s green bond market is part of a joint effort to help bridge the gap between Europe and China, the world’s two largest green bond markets. Such cross-border cooperation is crucial if we are to build the necessary scale to successfully transition towards sustainable economies and achieve our global climate change targets.”
The dean of IIGF, Wang Yao, added: “As the first cross-border synchronous display of Chinese green bond index series, the publication of the index series will help raise the international influence of China’s green finance, attract foreign investors to participate in the construction of China’s green financial system and promote the development of green industries in China.”
More than 110 green bonds are currently displayed on Luxembourg green exchange for a total value of almost €50bn.