Reference Index for China's Offshore Green Bond Market

This document is a case study detailing the collaboration between Ping An of China Asset Management (Hong Kong) Company Limited and FTSE Russell in developing a reference index for the Chinese offshore green bond market. The case study outlines the objectives of PAAMC (HK), which sought a new index aligned with global standards to benchmark its investments in the rapidly growing green bond market. The FTSE APAC-Select Investment-Grade Green Impact USD Bond Index was selected for its ability to meet specific requirements, including long-standing experience in sustainable indices, representativeness of the China green bond market, and alignment with global standards such as the Climate Bonds Initiative’s Climate Bonds Standard and the International Capital Market Association’s Green Bond Principles. The index is designed to ensure that green bonds from Greater China constitute at least 60% of its market value, providing a comprehensive measure of the performance of investment-grade green bonds issued in the region.