HK bourse to boost sustainable investments with green exchange

Hong Kong is launching a "pioneering" exchange that will act as a data and information hub on sustainable and green finance investments in Asia, it said yesterday.

Named Stage, the exchange will promote the transparency and accessibility of "green" finance across asset classes and product types.

Initially, it will give investors access to a database of sustainable investment options on Hong Kong's securities markets. It will house a repository of information on sustainability, green and social bonds, and ESG-related exchange-traded products listed on the Hong Kong share market. ESG stands for environmental, social and governance.

The online repository is expected to be launched as early as later this year, the bourse operator said.

Issuers with products that meet international standards or principles and provide post-issuance reports annually will be invited to join the exchange and display their products without paying fees.

The exchange said it plans to further develop Stage "in response to the evolving market landscape".

For example, it will consider expanding coverage to introduce more asset classes and product types, such as derivatives linked to relevant sustainability or ESG indexes, as well as other sustainable and green financial products.

Ms Grace Hui, the bourse operator's head of green and sustainable finance, said it aims to help issuers raise awareness of their sustainable and green financial products, and provide investors and asset managers easy access to information for due diligence, selection and monitoring.

"By encouraging market participants... to play an active role in enhancing the sustainable finance ecosystem in Hong Kong and the region, we are in turn reinforcing the sustainability of our own market."

THE BUSINESS TIMES