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Russell unveils index series tracking Chinese green bonds

News Team, 18/01/2019

FTSE Russell, the global index, analytical and data provider has unveiled a new index series tracking Chinese green bonds, the FTSE Chinese Green Bond Index Series.

According to Russell, it will “benchmark securities whose proceeds are specifically used to finance climate or environmental projects in mainland China.”

This move comes as China has become the second largest green bond market with $37 billion issued in 2017. Russell also see this as the right move to make, as Environmental, Social and Governance (ESG) factors are consistently growing in demand globally and makes up “a core part of investment”.

The index measures the performance of onshore Chinese yuan-determined fixed rate government, agency and corporate debt issued that are branded ‘green’.

At the moment there are 126 bonds included in the index, which covers 75 percent of on-shore green bonds issued by China’s government, agencies and corporations.

The company launched its first China bond indexes in 2011 and has been active in the Chinese market for nearly two decades. It now has $27 billion of equity assets under management benchmarked to or tracking FTSE China indexes.

The new index uses evaluated prices from Refinitiv.

Waqas Samad, CEO Benchmarks at FTSE Russell, said: “The combination of FTSE Russell’s strong capabilities in fixed income, sustainable investment and regional presence in China allow us to develop innovative tools to help meet the growing demand from our global customer base.”

FTSE Russell’s products are used by institutional and retail investors globally.  There is $16 trillion currently benchmarked to FTSE Russell indexes. For over 30 years, asset owners, asset managers, ETF providers, and investment banks have picked FTSE Russell indexes to benchmark their investment performance and create investment funds, ETFs, structured products and index-based derivatives.

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