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Hong Kong bourse to launch green finance platform

stacks of silver coins with leaf growing out of the tallest stack
By Asia Asset Management  
June 22, 2020

Hong Kong’s stock exchange plans to launch a platform for green investments that it says will be the “first of its kind” in Asia.

The Hong Kong Exchange and Clearing (HKEX) expects to introduce the Sustainable and Green Exchange, or STAGE, in the second half of this year.

“It will provide investors with access to a comprehensive database of sustainable and green investment options that are available on Hong Kong’s securities markets,” HKEX says in a statement on June 19. “It will also act as a valuable education and advocacy platform, promoting knowledge sharing and stakeholder engagement in sustainable finance.”

The platform will initially be a repository of information on green bonds and environmental, social and governance (ESG) products listed on the exchange.

HKEX says it will further develop the platform according to how the market evolves, and may expand coverage to include more asset classes, such as ESG-related derivatives.

According to Grace Hui, the bourse’s head of green and sustainable finance, the introduction of the platform “demonstrates HKEX’s strong commitment to sustainability”.

“By encouraging issuers, investors, asset managers, market participants and advisers to play an active role in enhancing the sustainable and green finance ecosystem in Hong Kong and the region, we’re in turn reinforcing the sustainability of our own market,” she says in the statement.

Green bonds were first introduced in Hong Kong in early 2018.

By the end of 2019, US$26 billion of green bonds were arranged and issued in the city, underscoring its “significant” role in green investment funding, HKEX says.