The Luxembourg Stock Exchange (LuxSE) has launched a Green Bond Channel in partnership with the Shanghai Stock Exchange (SSE).
The cooperation between the two exchanges focuses on providing relevant information in English about Chinese green bonds to offshore investors.
China boasts one of the world’s largest bond markets, valued at USD 9 trillion, with a production of green and sustainable bonds in excess of RMB 250 billion (approx. EUR 33 billion). However, the market may appear off-limits to the international investor community due to the difficulties of accessing the right level of information on the traded bonds.
“The Green Bond Channel is an information channel which aims to bridge this information gap. Our key focus is on helping to enhance investment channels between China and Europe. Stock exchanges can support the mobilisation of investor demand for investment. By receiving enhanced visibility, issuers are exposed to a far wider segment of potential investors and a deeper pool of investment capital,” commented Robert Scharfe, CEO of LuxSE, at the official launch of the cooperation announced at the Public Meeting of the World Federation of Exchanges and the SSE on June 8.
The agreement will improve efficiency in connecting issuers and international investors. The Chinese-listed green bonds can be traded via existing execution channels.