China debuts world’s first ‘green bond’ on London stock exchange

CGTN Europe

China’s first international ‘green bond’ has been unveiled at the London stock exchange.  The funds raised will be used for climate projects, and experts say it could bring security to financial markets as financiers battle with the Trump tariff fallout.  CGTN’s Michael Marillier reports.

Transcript

00:00London's financial district. This is where British business gets its bucks.

00:08But today, China is the talk of the town.

00:12This is the first time it's listed a green bond in an overseas market.

00:17It plans to use the money for projects that produce clean energy and curb pollution.

00:30In some ways, this is a test for China.

00:34The key question, do international investors believe in its environmental policies?

00:40The latest round of bonds is worth a combined $830 million.

00:46But officials say demand was seven times higher than supply.

00:51A clear sign that investors like what they see.

00:55This is a green development, so that means the international investors have a huge confidence

01:01about the sustainable development of China, both the green development and also digital transformation.

01:07China is the world's biggest producer of green technology, so it makes sense to invest in that space.

01:16The bonds could also offer some stability for markets on edge after President Donald Trump's tariff announcement.

01:25We need signals that the financial markets are functioning well.

01:28And we need also signals and clear signs that sustainable finance continues to be well supported

01:34by the international financial community.

01:39And this could be just the start.

01:42When you add up the value of all green bonds around the world, you get roughly $3 trillion.

01:49That's three followed by 12 zeros.

01:54China is hoping this bond will send a message that the future of investment is green.

02:01Michael Merilia, CGTN, London.

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