Asiamoney China Green Finance Awards

China Chengxin International Credit Rating

Yanfei Ye

There is plenty of green finance research done by banks and credit rating agencies in China.

Many Chinese green companies find it hard to finance their overseas Belt and Road projects, even with the guarantee of their parent firms.

Many Chinese banks have rolled out financial products to facilitate green finance transactions. But Industrial Bank’s ‘Lv Chuang Dai’ – which literally translates as ‘green innovative loan’ – stood out because of its ability to tap a huge pool of government funding.

Sustainable investment is still in its infancy in the Chinese onshore market. Many funds have not yet set up any environment, social and governance (ESG) -themed or green products. But China Southern Asset Management, led by general manager Yang Xiaosong, has integrated ESG principles into its own business operation as well as its investment decisions.

It was a particularly tough year to pick the winner of this award. With China’s domestic green finance industry fast developing, multiple verification agencies have sprung up in recent years.

China Chengxin International Credit Rating (CCXI), which has over 27 years of experience in rating domestic bonds, has long had a dominant market share in the wider onshore bond market. That now applies to the green bond market, too.

Bank of China’s $960 million Sofr-linked deal, issued in dollars, euros and offshore renminbi, was a landmark deal in more ways than one.