2019 Green Bond Market Analysis


  • The total number of issued bond in China in 2019 was 43,700 bonds, with a face value of 45.18 trillion RMB, a steady increase compared to the 43.84 trillion RMB issued in 2018.

  • A total of 218 green bonds were issued in 2019, with a face value of 360 billion RMB – a year on year increase of 34.4 percent.

  • Among them, 165 were labelled green bonds.

  • The proportion of labelled green bonds to the total bond market increased from 0.47% in 2018 to 0.54% in 2019.

  • 492 non-labelled green bonds were issued (meaning that they could qualify as green bonds if so desired). The total non-labelled green bond market was 1.63 trillion RMB, of which 558 billion went into various green projects.

  • Financial credit bonds are still the main type of green bond issued. But it declined as a share of total green bond issuance.

  • Green municipal bonds are the market of interest for 2020.


In 2019 the issuance of domestic and overseas green bonds exceeded 360 billion RMB and the cumulative issuance for the past four years surpassed 1.1 trillion. 2019 was a year of diversification, broader coverage, financial product innovation, and internationalization.

In an age of High-quality Development and Ecological Civilization the green bond stands out as a suitable financial solution to achieving those political goals. The main contradictions of this day and age are between the people's need for a better life and unbalanced and inadequate development. Strengthening the construction of the Ecological Civilization is crucial to fighting the battle of pollution prevention and the improvement of the modernization of China's governance system and capacity.

The Chinese economy is in a balancing act: It is facing headwinds with an increasingly complex interior and exterior environment. Balancing the need for supply-side reforms and controlling the debt burden is the call of the day. Green finance possesses countercyclical attributes needed in the current economic environment. Green finance instruments have the ability to move pollution control forward and leverage social capital to participate better in the overall process of achieving the Ecological civilization.

Since the start of the labelled green bond market in 2015, financial regulatory authorities have improved the green bond regulations in China in a multi-dimensional manner through standard setting, special supervision, and window guidance through transactions.

In 2019, the central financial regulatory authorities made more timely, appropriate, and accurate institutional arrangements for green bond-related policies, and have stimulated relevant market practices. In May 2019, the People's Bank of China issued the “Notice on Supporting the Issuance of Green Debt Financing Instruments in the Pilot Area for Green Finance Reform and Innovation”.

Breadth and scope

At the annual meeting of the China Financial Forum on Green Finance, Chen Yulu, deputy governor of the People's

Bank of China, said that the bank would work on expanding the use of green financial products and Service innovation, exploring the issue of green municipal bonds. Since then, Jiangxi and Gansu have realized the goal of a local government issuing special bonds. At the same time, the importance of climate-related risks to China's current financial development has been further clarified. In December 2019, PBOCs Chen Yulu told an audience that the “structural and global” characteristics of climate change have become one of the major forces for structural change in the economic and financial system.

Read Liu Suyang's 2019 review in its entirety here: IIGF观点: 中国绿色债券市场2019年度分析简报

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