Hong Kong green bond market briefing

The Hong Kong green bond market grew significantly in 2018, reaching USD2.3bn in issuance from local entities and USD11bn total when including non-local entities. Growth is driven by government incentives, such as the HKD100bn sovereign green bond programme and the Green Bond Grant Scheme. Low-carbon buildings are the primary allocation target (37%), and the market is heavily supported by external reviews and the use of US dollars. Hong Kong serves as a critical hub for mainland Chinese issuers, who accounted for 64% of the total market in 2018.

• The Hong Kong green bond market experienced significant growth in 2018, with nine issuers bringing USD2.3bn in green bonds and green loans to market, which was 4.6 times the volume of 2017 (USD501m). The private sector drove this issuance, with eight of the nine issuers being non-financial corporates.
• Allocations of green bond proceeds are dominated by low-carbon buildings at 37%, followed by water (21%), renewable energy (14%), low-carbon transport (12%), climate adaptation measures (8%), sustainable waste management (5%), and sustainable land use (3%).
• External reviews are widely used in the Hong Kong market, with 90% of bonds by value having at least one review. Three-quarters of these bonds have a second party opinion (SPO), with Sustainalytics as the primary provider (53% of bonds by value), followed by SynTao Green Finance (19%) and CICERO (4%). Additionally, 27% of the total bond value received assurance from the Hong Kong Quality Assurance Agency (HKQAA).
• US dollars are the most common currency for green bonds issued by Hong Kong entities, accounting for 55% of issuance, while CNY and HKD represent 25% and 17% respectively. All CNY-denominated green bonds are 'green panda bonds' issued by subsidiaries of Hong Kong domiciled issuers; these account for CNY2.9bn (USD430m) of the total CNY5.9bn (USD878m) issuance volume.
• The Hong Kong government has implemented several measures to stimulate the market, including the announcement of a HKD100bn (USD12.8bn) sovereign green bond programme. Other initiatives include the Green Finance Certification Scheme by the HKQAA and the Green Bond Grant Scheme, which provides subsidies up to HKD800,000 for issuers using the HKQAA certification for bonds of HKD500m or more.
• According to Hong Kong Monetary Authority (HKMA) data, USD11bn of green bonds were issued in Hong Kong in 2018, a 237% increase from 2017. The majority (83% or USD9bn) were issued by non-Hong Kong-based entities, with mainland Chinese entities being the largest group, totaling USD7bn (64% of the market).
• Climate Bonds identified 13 'climate-aligned' issuers from Hong Kong (companies deriving at least 75% of revenues from green business lines) with USD4.3bn outstanding as of June 2018. This includes 'fully-aligned' issuers (>95% revenue) such as Kowloon-Canton Railway (USD1.2bn outstanding) and 'strongly aligned' issuers (75%-95% revenue) such as MTR and China Dynamitics.

APA

Climate Bonds Initiative (2019). Hong Kong green bond market briefing. https://www.climatebonds.net/files/documents/publications/Hong-Kong-Green-Bond-Market-Briefing-2018.pdf

Chicago

Climate Bonds Initiative. Hong Kong green bond market briefing. 2019. https://www.climatebonds.net/files/documents/publications/Hong-Kong-Green-Bond-Market-Briefing-2018.pdf.

Wikipedia

{{cite report |author=Climate Bonds Initiative |title=Hong Kong green bond market briefing |date=February 2019 |url=https://www.climatebonds.net/files/documents/publications/Hong-Kong-Green-Bond-Market-Briefing-2018.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatebondsinitiative2019hong, author = {{Climate Bonds Initiative}}, title = {{Hong Kong green bond market briefing}}, institution = {Climate Bonds Initiative}, year = {2019}, month = feb, url = {https://www.climatebonds.net/files/documents/publications/Hong-Kong-Green-Bond-Market-Briefing-2018.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }