The Luxembourg Stock Exchange (LuxSE) is intensifying its partnership with the Shanghai Stock Exchange (SSE), thus offering easier access to Chinese green bonds for international investors.
The two stock exchanges signed an agreement to launch the simultaneous publication of a series of "China green bonds" indices in China and Europe. The index series consists of two indices that reflect the value of green bonds issued and quoted on the Shanghai Stock Exchange. These indexes aim to improve transparency and thus facilitate access for European investors to Chinese green values.
As a result of the cooperation between the Shanghai and Luxembourg stock exchanges under a Memorandum of Understanding signed in 2006, the indices will be published simultaneously on the websites of both institutions. The new index series has been developed by the Shanghai Stock Exchange and China Securities Index Co and is composed of two indices: SSE Green Corporate Bond Index and SSE Green Bond Index.
The composition of the two indices concerns only green bonds issued and quoted on the Shanghai Stock Exchange and denominated in RMB. According to the latest indices, the return on maturity of the SBS Green Bond Index is 4.91% with an average term to maturity of 4.38 years. The vast majority of the bonds listed in the two indices (95% for the SSE Green Corporate Bond Index and 64% for the SSE Green Bond Index) are revised by external audits carried out by EY, KPMG, PwC or SynTao Green Finance, all certified CBI (Climate Bonds Initiative), and applying the highest market standards for indices in this category.
The launch of the index series with the Shanghai Stock Exchange underscores the commitment and close ties of the Luxembourg Stock Exchange with China, the global leader in green bond issuance.
