Chinese Version

Greening of the "golden age"

Time:2017-09-18 From: Author:

The issuance of a bond has aroused the common attention of both the top financial and monetary authorities in China and the United Kingdoms significance behind it goes without saying.


On November 11, 2016, Chinese consumers staged a battle on "Double 11" and went on the other side of the oceans to play the 243-year-old international financial center's London Stock Exchange listing the first Chinese green asset Secured bonds.


Tian Guoli, Chairman of the Bank of China, Yi Gang, Vice President of the People's Bank of China, Zhu Qin, Minister of the Chinese Embassy in the UK, Simon Kobe, Secretary of the Treasury of the United Kingdom, Fan Zhilian, Chairman of the HSBC Group, Luo Ruoduo, CEO of the London Stock Exchange Group, etc. More than 50 people have witnessed this moment.


After standing in the flag of both China and Britain, they collectively watch the Chinese characters on the big screen of the Exchange.




What is the significance of this bond? The release of the press release by the Bank of China explains that the offering increased the structure of the green bond asset pool in China as a credit support structure and that the overseas investors linked the risk return through the bond purchase with the green bond market in China.


More than that, the Bank of China further emphasized that it provided "dark green" bonds to the market this time, both in line with the international guidelines for green bonds and the pledged assets are also China's green bonds recognized by the People's Bank of China. Through the green bond asset pool as a guarantee structure, this issue has been upgraded. This set a new template for the entire Chinese banking industry to raise funds in international capital markets and opened up a space for reducing financing costs.


Yi Gang, deputy governor of the People's Bank of China, said that the issuance of the green bonds is of particular significance for further enhancing the green finance cooperation that China and the United Kingdom have reached at the September G20 summit in Hangzhou. London is an international financial center. The listing of Bank of China Green Bond on the London Stock Exchange is of special significance. He said he expects more Chinese financial institutions to issue more green financial products in London in the future.




As the authoritative interpreter of China's green finance development, Ma Jun, Chief Economist of the Research Bureau of the People's Bank of China and director of the Green Finance Committee of the China Finance Association, made a key point: the issuance of green-asset-backed bonds in London in London Is the latest achievement made by China and the United Kingdom in the field of green finance after they jointly promote the formation of a green finance consensus by the G20.


Simon Kirby, the chancellor of the UK Department of the Treasury, said that the Bank of China's green bonds going public in London are the best examples of a concerted effort between China and Britain to address the current challenges.


Among many British voices, Sir Roger, the chairman of the Green Finance Program of the City of London, is most enthusiastic. In his interview with the media, he said: "We want to learn from China how to develop the bond market, especially green-backed bonds."


Consistency is strong. In January 2016, the People's Bank of China and the Bank of England co-sponsored the establishment of a G20 green finance research group to encourage commercial departments to enhance green financial innovation and promote the interconnection of green bond markets both at home and abroad. Under the strong initiative of China, green finance was first put on the agenda at this year's G20 Hangzhou Summit.


The issuance of China's green-backed bonds is a pilot project of the green finance research group. A strong signal from this is that the great potential of the global green finance market is being released. The bridge connecting the development of green finance between China and the world is gradually becoming a bridge Smooth.



The issuance of the Bank's green asset-backed bonds coincided with the eighth Sino-British Economic and Finance Dialogue. China and Britain jointly held a series of activities and interpreted and refined the economic and financial cooperation between China and Britain in the "Golden Age" from many angles.


The outcome of the Eighth China-Britain Economic and Financial Dialogue announced by the Ministry of Finance of China includes 63 items in 5 major categories, including China-UK comprehensive global strategic partnership for the 21st century, trade and investment, financial services, infrastructure and energy, Industrial strategy and so on.


The Xinhua News Agency, the mouthpiece, expressed the Chinese government's attitude: "(This dialogue) has infused more substantive content into the 'golden age' of the Sino-British relations."


Among the many achievements, the consensuses of the two countries from the field of green finance constitute the green part of the "golden age" between China and Britain.


On November 11, after an end to an interview with the London Stock Exchange, reporters came to a seminar on "Greening the Golden Era" nonstop. After seated, I found out that just two of the guest speakers Yi Gang and Simon Kirby are also "hurries" over.


This piece of news from the Financial Times describes the details of the incident and shows us once again the full hand in hand between the two countries in the field of green finance.


Wang Yao, Deputy Secretary General of the Green Finance Committee of the Chinese Finance Society and Wang Yao, Dean of the International Institute of Green Finance of the Central University of Finance and Economics, introduced the green finance committee and communicated with the Green Finance Initiative of the City of London on the future cooperation between the two sides. During the past week, the delegation from Zhongcai Green Finance Institute also had extensive contacts with the British side and held many talks.


According to Wang Yao's introduction, Vice Premier Ma Kai also stressed at the banquet on the 10th that green finance and financial technology will be an important engine for promoting economic growth.


"Green Golden Age"


As the financial cooperation between China and the United Kingdom continues to deepen, the exploration and cooperation between the two countries in the field of green finance are also entering the era of "greening the golden age."


In fact, although both China and Britain are forerunners of "green finance", the modes and paths for developing green finance between the two countries are different. China's green finance is a top-down policy to promote - first by the Central Bank and the seven ministries for the development of green finance to provide a sound "top-level design" and the world first put forward the definition of green finance, and then deep into all fields, Various places carry out concrete practice.


Britain's green financial markets also have their own characteristics. Because of the keen sense of smell in the capital markets in the United Kingdom and the capture of profitable opportunities in green finance, social capital has gradually come to the conclusion that green finance is the future of profitability and has since shifted its focus to green businesses. This pattern of bottom-up development is also worth learning from China.


"As the UK's Green Investment Bank, set up in 2012, injects investment into areas that private social capital does not want to be involved in. Its capital investment direction serves as a model for private capital investment and found that the sector is in fact investable and profitable This is a very good experience in China, and the experience and awareness of British financial institutions, environmental risk management and so on are worth learning from China, "Professor Wang Yao said in an interview.


At present, China and Britain have reached a consensus on cooperation, that is, the promotion of green finance needs to meet two criteria: they must be green and be profitable.


According to the British BBC, green finance can not only reshape people's investment awareness, but with the development of green finance, everything that is relevant to people's daily life will be renewed. All products that cause serious pollution to the environment will be eliminated by the market.


From introduction and development of green finance to gradual formation, everything in this process is richly endowed with great creativity and great imagination, which is enough to make it a valuable note in the history of human finance.


In the future, the development of green finance in China and Britain will continue. In 2017, the G20 Summit in Hamburg, Germany, will once again become the new stage of green finance cooperation between China and Britain. (Summary)


Source: Xinhua Net, China News Network, China Economic Net, BBC England Net, Financial Times, China Business News, Finance, China Net