China markets 6 billion yuan green sovereign bond in Hong Kong

[HONG KONG] China is selling as much as six billion yuan (S$1.1 billion) of green sovereign bonds in Hong Kong on Thursday (May 28), returning to the international ESG debt market a year after its debut in London.

The renminbi-denominated note would mark the Chinese government’s first green bond issuance in Hong Kong, following its March pledge to expand funding in the international ESG market as a means to support domestic low-carbon developments. The sale would highlight Beijing’s efforts to enhance its environmental credentials while expanding the depth of the offshore renminbi-debt market.

China’s Ministry of Finance set the initial guidance for the three‑year and five‑year notes at yields of around 1.85 per cent and 2 per cent, according to a person familiar with the matter. The notes may be priced as early as later on Thursday, the person added.

“Cheaper funding in renminbi makes issuance highly attractive, while ESG-labelled bonds perfectly align with China’s strategic push for low‑carbon industrial upgrading,” said Yoshi Yue, associate director at Sustainable Fitch. “Policy direction and real economic demand are now reinforcing each other, creating powerful tailwinds for green finance.”

China raised six billion yuan in its inaugural offshore green bond sale in London in April 2025, funding a range of green activities such as cutting greenhouse gas emissions, biodiversity preservation and pollution control. Chinese officials also have been working with investment banks on another potential green bond sale in London that could take place in the second half of this year.

“London provides direct access to Europe’s well‑established ESG investor base, while Hong Kong remains the primary hub for Chinese sovereign and provincial issuers,” Yue said. “Even last year’s London sovereign green bond was dual‑listed in Hong Kong, underscoring China’s strategy of combining global visibility with strong regional investor reach.” BLOOMBERG