RUS | ENG | All
Enter the email or login, that you used for registration.
If you do not remember your password, simply leave this field blank and you will receive a new, along with a link to activate.

Not registered yet?
Welcome!

2021-04-01 12:35:00

CHINA'S GREEN BONDS $15.7 BLN

CHINA'S GREEN BONDS $15.7 BLN

REUTERS - APRIL 1, 2021 -  China overtook the United States to lead a boom in global green- bond issuance in the first quarter, but analysts said it needs to do more to draw investors to help fund President Xi Jinping’s estimated $21 trillion carbon neutrality pledge.

Pending tasks include raising investor awareness of the environment, harmonising fragmented rules and tackling ‘greenwashing’, or issuers’ efforts to inflate their green credentials, they said. At stake is Beijing’s goal of net zero carbon emissions by 2060.

Chinese issuers including banks, property developers, power generators and railway operators sold $15.7 billion of bonds during January-March period to fund ‘green’ projects such as clean and renewable energy, according to Refinitiv data.

The volume of such bonds, mostly yuan-denominated, almost quadrupled from a year earlier, the data showed.

That exceeds the roughly $15 billion of such bonds sold by U.S. issuers in the first quarter, and helped drive a tripling of green bond issuance globally.

Green bonds blossomed “largely thanks to China’s recovery from the coronavirus,” said Nathan Chow, strategist at DBS. “In addition, the Chinese government is going all out to develop this market this year.”

China, the world’s biggest emitter of carbon dioxide, needs 140 trillion yuan ($21.33 trillion) of debt financing over the next 40 years to meet its net-zero emissions target, investment bank China International Capital Corp (CICC) estimates.

With roughly 800 billion yuan of green bonds outstanding, China is already the world’s second-biggest green bond market after the United States. However, green bonds account for less than 1% of China’s $18 trillion bond market.

At this stage, “companies have no cost advantages issuing green bonds... and there’s not enough market support for many green projects which take a long time to complete and are seen as risky,” said CICC economist Zhou Zipeng.

Highlighting such headwinds, China’s first batch of “carbon neutral” bonds, launched in February, met tepid demand.

Several fund managers said green bonds are not yet on their investment radar.

“The only thing Chinese investors currently look at is yield. So obviously if green bonds cannot offer the extra returns, they ask the government, ‘what can you do to help me?’,” said Ricco Zhang, Asia-Pacific director of the International Capital Market Association (ICMA).

A brokerage source said state-owned companies were motivated to issue green bonds to align with government priorities, but investors lacked incentives to buy them.

Authorities are aware of the problems. Earlier this month, Chinese central bank governor Yi Gang called for incentives to boost private participation in meeting Beijing’s carbon goals.

Moving closer to international standards by excluding coal from the green market would widen the potential foreign investor base, Chow of DBS said.

ICMA’s Zhang said regulators also need to harmonise different domestic standards. Currently, China’s central bank, securities regulator and the state planner have separate rules for green bonds issued under their supervision.

“Sometimes it’s hard for international investors to have a granular understanding of different (Chinese) green bonds. This brings challenges for green investors to identify the right target for investment,” he said.

China greed bond issuance 1q 2021

-----


Earlier:

CHINA'S GREEN BONDS $15.7 BLN
2021, March, 30, 12:15:00
CHINA'S HYDROGEN STRATEGY
As China’s largest hydrogen producer, Sinopec will focus on fossil fuel-based hydrogen production over the next five years and also start introducing “green” hydrogen using solar and wind power,
CHINA'S GREEN BONDS $15.7 BLN
2021, March, 26, 12:05:00
CHINA RENEWABLES SUPPORT
China will preferentially give subsidies to wind and solar power companies, and further step up credit and loan support.
CHINA'S GREEN BONDS $15.7 BLN
2021, March, 15, 10:40:00
CHINA INDEXES DOWN
The CSI300 index fell 1.7% to 5,061.66 points at the end of the morning session, while the Shanghai Composite Index lost 0.6%, to 3,432.01 points.
CHINA'S GREEN BONDS $15.7 BLN
2021, March, 9, 12:45:00
CHINA NEED NUCLEAR POWER
China said in its 2021-2025 five-year plan released on Friday that it would raise total nuclear capacity to 70 gigawatts (GW) by the end of 2025.
CHINA'S GREEN BONDS $15.7 BLN
2021, March, 3, 12:35:00
CHINA'S CLEAN ENERGY PLAN 1,000 GW
State Grid expects wind and solar installed capacity to hit 1,000 GW by 2030
CHINA'S GREEN BONDS $15.7 BLN
2021, February, 12, 11:40:00
CHINA'S CLEAN ENERGY 40%
China grid companies will steadily increase the amount of power purchased from clean generation sources from 28.2% in 2020 to 40% by 2030,
CHINA'S GREEN BONDS $15.7 BLN
2021, January, 25, 13:50:00
CHINA'S NEW RENEWABLES 120 GW
China added nearly 72 GW of wind power capacity and 48 GW of solar capacity in 2020.
All Publications »
Tags: CHINA, SHARES, STOCKS, INDEXES, BONDS
Chronicle:
CHINA'S GREEN BONDS $15.7 BLN
2021, July, 9, 12:04:00
HYDROGEN RUSSIA AND CIS, Moscow, 20-21 October 2021
International Conference and Exhibition ‘Hydrogen Russia and CIS’ brings together more than 200 senior executives of hydrogen production plants from Russia and the CIS
CHINA'S GREEN BONDS $15.7 BLN
2021, July, 9, 12:00:00
ARGENTINA'S NUCLEAR SMR
Before work was suspended, it was in line to be the world’s first operating SMR. The government licensed it as a prototype in 2009.
CHINA'S GREEN BONDS $15.7 BLN
2021, July, 9, 11:55:00
CHILE'S COAL GENERATION DOWN
In June 2021, the Chamber of Deputies of Chile has approved a bill that prohibits the installation and operation of coal-fired power plants.
CHINA'S GREEN BONDS $15.7 BLN
2021, July, 8, 12:50:00
OIL PRICE: NEAR $73
Brent slipped by 23 cents, or 0.3%, to $73.20 a barrel, WTI were down 33 cents, or 0.5%, at $71.87 a barrel.
CHINA'S GREEN BONDS $15.7 BLN
2021, July, 8, 12:45:00
OIL PRICES 2021-22: $72-$67
We expect rising production will reduce the persistent global oil inventory draws that have occurred for much of the past year and keep prices similar to current levels, averaging $72/b during the second half of 2021 (2H21).
CHINA'S GREEN BONDS $15.7 BLN
2021, July, 8, 12:40:00
EUROPE CLIMATE RULES
According to draft proposals seen by market sources, the CBAM will replace the current system of free carbon allowances for metals sectors, and tighten allowances in the European Emissions Trading System generally, a bone of contention for some.
CHINA'S GREEN BONDS $15.7 BLN
2021, July, 8, 12:35:00
ASIA INDEXES DOWN ANEW
The Hang Seng index (.HSI) led losses with a 1.9% drop, its eighth consecutive session in the red, with more falls in internet giants Tencent (0700.HK), Meituan (3690.HK) and Alibaba (9988.HK) as the sector reels from sweeping Chinese regulatory scrutinty.
All Publications »