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China Firms Embrace Alternative Green Debt With Looser Rules

  • Green asset-backed securities issuance has soared in past year
  • Better frameworks, data reporting key for future growth: Fitch
Turbines at a wind farm near Golmud, Qinghai province, China.

Turbines at a wind farm near Golmud, Qinghai province, China.

Photographer: Qilai Shen/Bloomberg
Updated on

An alternative kind of environmental debt continues to gain momentum in China, one with looser standards than traditional green bonds.

Sales of green asset-backed securities, which package together assets that generate income, totaled 56.1 billion yuan ($8.4 billion) in the first four months of 2022, according to data compiled by Bloomberg. It’s the second-straight year that issuance more than doubled in those months.