China Focus

Our survey of 180 issuers and investors underscores how official support and the appetite of issuers and investors are driving China’s increasingly dynamic sustainable finance market.

Executive Summary
  • Green and sustainable finance is becoming mainstream in mainland China. 72 per cent of respondents are open to investing in a green and sustainable economy.
  • The finance sector is seen as having real scope to generate significant innovations in sustainability.
  • Supply chain sustainability is a top issue for the region – 90 per cent of issuers prefer to work with companies that have sustainable supply chains.
  • Of 12 areas with the most potential for sustainable innovation over the next five years, 69 per cent picked finance – more than any other sector.

 

Key Findings

 

Mainland China today is home to the world’s largest carbon trading exchange, one of the world’s biggest green bond markets and a wide array of green and sustainable private equity funds. With regulatory and policy support, the government has helped spur a growing private interest in green finance, which has in turn been a huge driver of sustainability.

Our survey of 180 capital markets issuers and investors shows widespread acceptance of green and sustainable finance in the country. A majority of investors – 72 per cent – are open to investing in a green and sustainable economy. And this is in the face of notable obstacles, including a perceived lack of returns and an absence of tax or financial incentives.

What’s more, issuers and investors are looking to the finance sector to drive more sustainability in the future. Powered by the success of mainland China’s green bond market, investors see real scope for the finance sector to generate significant innovations in sustainability in the next five years, beating out even the tech sector. Read more

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