HKEX announces sustainable finance exchange Stage
Hong Kong Exchanges and Clearing Limited (HKEX) has announced plans to launch Stage, a new sustainable exchange.
HKEX says Stage will promote the visibility, transparency, and accessibility of sustainable and green finance.
It promises a “comprehensive database” of sustainable and green investment options on Hing Kong’s securities markets.
The exchange is also designed to act as an “education and advocacy platform” to increase knowledge and engagement in sustainable finance.
Sustainable finance refers to an integration with environmental, social and governance (ESG) criteria.
Sustainable finance initiatives focus on highlighting and investing in projects and companies that are societally or environmentally friendly.
These can include sustainable funds, green bonds, impact investing, microfinance and sustainable projects.
At least $30.7 trillion of funds is held in sustainable or green investments, according to 2019 data from the Global Sustainable Investment Alliance.
“By encouraging issuers, investors, asset managers, market participants and advisors to play an active role in enhancing the sustainable and green finance ecosystem in Hong Kong and the region, we are in turn reinforcing the sustainability of our own market,” says Grace Hui, HKEX head of green and sustainable finance.
“Our goal is to help issuers raise awareness of their sustainable and green financial products, whilst also offering investors and asset managers easy access to information for their due diligence, selection and monitoring.”
In its initial phases, Stage will be home to a repository of information on sustainability, green and social bonds and ESG-related exchange-traded products.
Issuers with products that meet international standards or principles and provide post-issuance reports annually are invited to join without having to pay fees or display products.