ANALYZING THE GREEN BOND MARKET IN CHINA: INSIGHTS FROM ISSUERS

Abstract

China's green bond market has seen significant development since its inception, albeit starting later than its international counterparts. This growth has been driven by regulatory initiatives and industry standards aimed at promoting green finance and sustainability. In 2014, the Global Capital and Market Federation, along with the Meteorological Securities Development Group, established the Basic Principles of Green Securities (GBP) and the Guidelines for Meteorological Securities Institutions (CBS), providing essential groundwork for industry regulation. In 2015, the Chinese government issued "Several Opinions on Further Promoting the Construction of Socialist Ecological Civilization," marking the initial steps towards establishing a green financial system within China. Subsequently, continuous government support and regulatory measures have paved the way for the blossoming of the green bond market. A significant milestone was reached in July 2022 when China introduced its Green Bond Principles, marking a new phase of development for the market. To gain insights into the current state and challenges of China's green bond market, this study reviews literature and professional reports from 2015 to 2022. It offers a comprehensive overview of the market's progress, identifies existing challenges, and presents strategic recommendations for further development.