Current Situation and Development Direction of Green Finance in Hong Kong

Source: Bank of China (Hong Kong) Limited | 15 October, 2018

Thanks to continuous promotion of the government. Hong Kong’s green bond market has shown remarkable performance in recent years and new developments have taken place in the green loan market.

Since the beginning of this year, the development of Honk Kong’s green bond market has accelerated significantly. Firstly, issuance of green bonds increases significantly. Compared with issuance of US$2.3 billion in 2017, about 16 green bonds with a total of US$2.3 billion were issued in Hong Kong in the first half of this year, three times as much as last year. Secondly, the issuers tend to be diversified, including local institutions, Mainland enterprises and international organizations. Mainland enterprises are the main participants in Hong Kong’s green bond market. The proportion and scale of green bonds issued offshore by Mainland enterprises increased significantly from 18%(US$6.6 billion) in 2017 to 40%(US$5.25 billion) in the first half of this year, and the issuers shifted from large commercial banks and policy banks to leading enterprises. Thirdly, the denominated currencies are more abundant, including currencies such as Hong Kong dollar and Renminbi.

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