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China launches first green bond sale in Hong Kong, aiming to raise US$886 million
Country looking to issue offshore sovereign green bonds and tap global capital to invest in green development
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Zhang Shidongin ShanghaiPublished: 11:01am, 29 May 2026
China launched the sale of 6 billion yuan (US$886 million) of green sovereign bonds in Hong Kong late on Thursday night, the first such sale in the city, as Beijing continues to build its presence in offshore debt markets and seeks ways to fund climate action.
The response was good, indicating international market confidence, said HSBC Holdings, a joint lead manager and joint bookrunner of the bond issuance. The strong response came as central banks globally had been increasing the share of yuan in their reserve portfolios, it said.
The Ministry of Finance is selling two tranches of the green bonds maturing in three and five years, with each being worth 3 billion yuan. The three-year debt had a coupon rate of 1.42 per cent, while the five-year one carried a yield of 1.56 per cent. The short-dated bond matures on June 4, 2029, and the longer one on June 4, 2031.
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China has been expanding offshore green financing, aiming to issue offshore sovereign green bonds and tap global capital to invest in its green development. The capital raised from this bond will be used to fund or refinance green spending from China’s fiscal budget under its sovereign green bond framework.
The ministry sold its first offshore yuan-denominated green sovereign bond in London in April last year, raising 6 billion yuan to fund activities including cutting greenhouse gas emissions, biodiversity preservation and pollution control.
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David Liao, co-chief executive for Asia and the Middle East at HSBC, said on Friday the latest issuance had received “a very positive response from international investors, reflecting the international market’s strong confidence in the growth potential of China’s economy”.
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