HKEX to launch green exchange promoting sustainable investments

The exchange will promote the visibility, transparency, and accessibility of sustainable and green finance across asset classes and product types.
The exchange will promote the visibility, transparency, and accessibility of sustainable and green finance across asset classes and product types.PHOTO: REUTERS

SINGAPORE (THE BUSINESS TIMES) - Hong Kong Exchanges and Clearing Limited (HKEX) is launching a "pioneering" exchange that will act as a data and information hub on sustainable and green finance investments in Asia, it said on Thursday.

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

In its initial phase, it will give investors access to a database of sustainable and green investment options available on Hong Kong's securities markets, for a start.

Stage will house a repository of information on sustainability, green and social bonds, and environmental, social and governance (ESG)-related exchange traded products listed on HKEX.

This 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 on the platform without paying fees.

HKEX said it is planning to further develop Stage "in response to the evolving market landscape".

For example, it will consider expanding the exchange's coverage to introduce more asset classes and product types, such as derivative products linked to relevant sustainability or ESG indices, as well as other sustainable and green financial products.

HKEX head of green and sustainable finance Grace Hui said the bourse operator 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.

 

She added: "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 are in turn reinforcing the sustainability of our own market."