Environmental factors of sustainable development in China and Hong Kong

Abstract

This article discusses China has become the second largest issuer of green bonds in the world after the United States. The authors carried out an analysis The Green Bond Index shows relatively good results due to its long–term outlook and high creditworthiness, as well as related industry factors. In recent years, China’s green bond market has developed rapidly and has now become the second largest green bond market in the world after the United States. Understanding the reasons that contributed to the growth and excellent market performance can help investors determine whether to include Chinese green bonds in their investment portfolios and how. The Hong Kong government has announced the successful placement of tokenized “green” bonds in the amount of HK$ 800 million (about $101.7 million). A press release from the Hong Kong Monetary Authority (HKMA) states that this is the world's first tokenized “green” bond issued by the government. "Green" bonds are debt securities that are issued to attract investment in projects related to improving the environmental situation. The issue of tokens was made by HSBC bank on a private blockchain. Subsequent payments of coupon income, settlements on transactions on the secondary market and redemption of bonds will also be carried out in digital form. For the tokenization of bonds, the Goldman Sachs GS DAP bank platform was used, and settlements on bonds are carried out by the Central Clearing System for Debt Instruments (CMU) HKMA. Tokenization of “green” bonds with a yield of 4.05% and a maturity of 1 year is one of the pilot projects announced by the Hong Kong government as part of the virtual asset market development plan.