August 12, Shanghai – SynTao Green Finance and Climate Bonds Initiative hold the “Launch of Climate Bonds Green Bond Market Annual Report and Roundtable: Discussion on Chinese Green Bonds Market”, the Chinese version of Bonds & Climate Change - State of the Market 2016 is launched, and panelists have a discussion on how to further promote the development of green investment in China. The event is co-hosted by the National Business Daily and ASD Emylon Business School, and is supported by Colight Asset Management. More than 50 representatives from companies, financial institutions, service providers and media join the event.
Ms Ruby Lv, the market director of SynTao, and Professor William Hua Wang, Associate Dean EMLYON and Dean EMLYON Asia address opening speeches. Ms Lv says that green finance is an effective approach to reduce climate risk. As the first approved verifier by Climate Bonds Standard in China, SynTao Green Finance has already verified the first corporate green panda bond in China, which issued by Beijing Enterprises Water Group Limited. SynTao Green Finance will further contribute to the growth of green finance in China based on its rich experience in sustainable finance. Professor Wang says that green bond is an intersection of finance and environment. Stakeholders should participate in building a green bond ecosystem, establishing clearer green standards and increasing the credibility of being green.
Mr Sean Kidney, the CEO of the Climate Bonds Initiative launches the Chinese version of Bonds and Climate Change: the State of the Market in 2016. This is the fifth annual report of Climate Bonds Initiative’s research. The report reveals China is the largest country of issuance in the climate aligned universe. China is also seen as a leader in the labelled green bond market and is the largest country of issuance in 2016 ytd. Mr Sean Kidney says that: “The report reflects the growing weight of Chinese green bond development and its global implications for markets and institutional investors. China is steadily progressing its green finance systems. This alignment of bond market activity with low emissions growth, climate and environmental goals will provide enormous opportunities for global investors.”
Mr Raymond Zhang, the Managing Director of SynTao Green Finance, hosts the roundtable on the topic of growing China’s green investment. Panelists include: Mr Huang Bo, the Vice President and General Manager of Shanghai of National Business Daily; Mr Cao Jin, the Manager of Innovative Business in Colight Asset Management; Ms Liang Xiaojing, the Senior Manager of Asset and Liabilities Management Department of Pudong Development Bank; Ms Liu Wei, the Deputy Director of Bond in the Shanghai Stock Exchange; Mr Evan Lee, the Deputy General Manager of Bond Financing Departing in Haitong Securities and Mr Sean Kidney, the CEO of Climate Bonds Initiative. (from left to right)
Mr Raymond Zhang starts the discussion by quoting “green bond market in China grows from zero to hero in less than one year”. The significant growth is the outcome of the effort of all stakeholders in the market.
Ms Liu Wei, the Deputy Director of Bond in the Shanghai Stock Exchange, states that the quality of the green bonds is more important than the quantity. The sustainable growth of a green bond market needs a well-regulated start. She hopes that every green bond can be standardized in green verification, sustainable evaluation and green performance assessment.
Ms Liang Xiaojing, the Senior Manager of Asset and Liabilities Management Department of Pudong Development Bank, thinks that issuing green bonds can help banks to improve the structure of assets and liabilities. She also mentions that the market needs more incentives and related policies from regulators.
Mr Evan Lee, the Deputy General Manager of Bond Financing Departing in Haitong Securities, thinks that the most effective driving force for green bond market development is the support from regulators and the recognition from investors. The governing bodies now have relatively faster approval process for green bonds, and green bonds usually enjoy a relatively lower interest rate than average.
Mr Cao Jin, the Manager of Innovative Business in Colight Asset Management, points out that China’s green bond market is policy driven, which is different from market driven in developed markets. As an investor, he believes the growth of green bond in the long term; however, returns and risks need to be examined in the short term. Lower interest rates benefit the green industry but reduce the returns for investors. The regulators need to provide more incentives for green bonds to attract investors.
Mr Huang Bo, the Vice President and General Manager of Shanghai of National Business Daily, identifies the role of media in the development of green bond market – disclosing information, influencing policy and investors, fostering the market and participating in market research.
This is the first event of a series of activities that are organized by SynTao Green Finance and the Climate Bonds Initiative. SynTao Green Finance and the Climate Bonds Initiative will hold more seminars and workshops in different cities, aiming to promote the concept of green bonds and green finance among stakeholders in China’s market, and to contribute to the mitigation of climate change by leveraging the capital market.
Panelists: Raymond Zhang, Huang Bo, Cao Jin, Liang Xiaojing, Liu Wei, Li Yifeng, Sean Kidney, Ruby Lv and Wang Hua
About SynTao Green Finance
SynTao Green Finance is founded by SynTao, a leading CSR consultancy in China. SynTao Green Finance is the first China based Climate Bonds Standard verifier. We provide pre- and post-issuance green bond verification and green finance capacity building services. As a leading sustainable finance consultancy, SynTao Green Finance also provides comprehensive ESG information analysis, responsible investment capacity building, environmental and social risk management, and green finance product innovation services for investors, companies, governments, academia and civil society. SynTao Green Finance is the co-founder of China Social Investment Forum. SynTao is a member of the Green Finance Committee of China Society of Finance and Banking.
About Climate Bonds Initiative
Climate Bonds Initiative is the only organisation in the world working solely to mobilize the largest capital market of all, the $100 trillion bond market, for climate change solutions. We promote investment in projects and assets necessary for a rapid transition to a low-carbon and climate resilient economy. The strategy is to develop a large and liquid Green and Climate Bonds Market that will help drive down the cost of capital for climate projects in developed and emerging markets; to grow aggregation mechanisms for fragmented sectors; and to support governments seeking to tap debt capital markets. Climate Bonds Initiative is a contributing member of the Green Finance Committee of China Society of Finance and Banking.
For more information, please contact:
SynTao Green Finance: contact@syntaogf.com; 010-58699466 or visit: www.syntaogf.com
Climate Bonds Initiative: andrew.whiley@climatebonds.net; +44 (0) 7914 159 838; or visit: www.climatebonds.net