YICAI | G20 Sustainable Finance Report Includes Shanghai Bourse's Rural Revitalization Work

G20 Sustainable Finance Report Includes Shanghai Bourse’s Rural Revitalization Work

(Yicai) Nov. 1 -- The Shanghai Stock Exchange's efforts to support rural revitalization in China through capital market development has been included in this year's Sustainable Finance Report by the Group of 20 intergovernmental forum.

The report, approved last month at the G20 Finance Ministers and Central Bank Governors meeting in Marrakech, includes 72 case studies from 30 countries and regions, aiming to share the experience of different countries in sustainable development investing.

The SSE launched rural revitalization corporate bonds, with the proceeds designated to supporting poverty alleviation and rural renewal. Thirty-three bonds worth CNY22.46 billion (USD 3.1 billion) covering projects in 19 provinces were issued on the SSE last year, with none defaulting.

On Nov. 1, Huzhou Industrial Group listed CNY500 million (USD68.3 million) of such bonds on the exchange, mainly to build and operate an aquaculture demonstration zone, a digital fish tank base, and a digital center in the Nanxun district of Huzhou city.

The SSE also worked with the China Securities Index to compile rural renewal-related indexes, including the CSI Rural Revitalization Bond Index to reflect the overall performance of rural revitalization bonds and the CSI Poverty Alleviation Development Index, which tracks listed firms working in poverty-stricken areas or in poverty alleviation industries.

The SSE has guided listed companies to fulfill their social responsibilities. Around 750 helped to fight poverty last year, with a total investment of nearly CNY80 billion (USD11.02 billion), according to their annual earnings reports filed with the bourse.

The G20 Sustainable Finance Report includes eight cases from China, including the green finance evaluation for financial institutions plan of the People's Bank of China and the ecosystem protection redline map program of Industrial and Commercial Bank of China.