Green bonds to rise in Q4

Staff reporter

The Hong Kong Green Finance Association expects the city's sustainable bond issuance to rise from the fourth quarter onward as the US begins its rate-cut cycle.

In the first nine months of the year, Hong Kong's sustainable bond issuance, including offshore bonds issued in the city, reached US$25 billion (HK$194 billion) - slightly lower than the same period last year - due to issuers' sensitivity to issuance costs, according to HKGFA executive vice president Huang Chaoni.

However, Huang noted that market conditions are now improving.

Huang also pointed out that the private sector has also become more active this year. While sovereign and quasi-sovereign institutions accounted for half of the total issuance in 2023, private sector entities, including corporations and financial institutions, contributed 80 percent of the total issuance this year, she said.

Meanwhile, the HKGFA announced that its annual forum, set to take place next Wednesday is expected to attract over 500 participants in person. The forum will cover topics such as transition finance and green technology.

Separately, the Securities and Futures Commission yesterday welcomed the publication of a voluntary code of conduct by an industry-led working group for environmental, social, and governance ratings and data product providers in Hong Kong.

Supported and sponsored by the SFC, the code requires ESG ratings and data products providers, who sign up to make publicly available a self-attestation document, detailing their approach and actions taken to adhere to the code's principles.