TF International and ChinaBond Pricing Center Jointly Launch the First ESG-themed Chinese Offshore USD Bond Index to Effectively Drive the Development of Green and Sustainable Financial Markets and Facilitate the Financing of High-quality Enterprises
HONG KONG SAR - Media OutReach - 30 November 2021 - TF International Securities Group Limited ("TF International" or "the Company"), a wholly-owned subsidiary of Tianfeng Securities Co., Limited (Stock Code: 601162.SH), and ChinaBond Pricing Center Co., Ltd. ("ChinaBond Pricing Center") today jointly launched the ChinaBond TFISEC ESG Selected Chinese Offshore USD Bond Index ("the Index"), the first ever environmental, social and governance ("ESG") themed Chinese USD bond index compiled and launched within China. It aims at facilitating both onshore and offshore investments, as well as guiding onshore and offshore funds to serve the green and sustainable sectors with the goals of achieving Carbon Dioxide Emissions Peak and Carbon Neutralization. In the long run, it is expected that more than RMB100 trillion of low-carbon investment needs will be satisfied by stimulating ESG investing.
From left to right: Mr. Chuan ZOU, CEO of TF International; Ms. Christine WILLIAMS, Deputy Global Head of Family Office of InvestHK; Mr. Lei YU, Chairman of Tianfeng Securities, as well as Mr. Yong WANG, Chairman and President of TF International.
Using fair and objective screening criteria, selected issuers are primarily from traditional real sectors
The ChinaBond TFISEC ESG Selected Chinese Offshore USD Bond Index is screened for the entire Chinese USD bond market, which includes a total of 2,213 Chinese USD bonds that are potentially eligible for inclusion. The screening criteria are based on the ChinaBond ESG Evaluation published by ChinaBond Pricing Center, that is, issuers are grouped according to the Center's industry classification standard before bonds issued by the top 30% issuers in term of ESG rating in each industry are selected for compilation. Constituent bonds are reviewed and adjusted on a monthly basis. Information about the Index can be found on www.ChinaBond.com.cn.
The Index covers 12 traditional industries, including finance, construction and real estate that constitute the largest part of the Index in order as follows: 46%, 18% and 12%. Underlying companies include Chinese enterprises such as Bank of China (3988.HK), Bank of Communications (3328.HK), Poly Real Estate (600048.SH) and China State Construction (3311.HK). As of the end of October 2021, the Index is comprised of more than 360 Chinese USD bonds, accounting for about 20% of the overall Chinese USD bond market.
The Company of great vision gets a head start in the green finance space
Tianfeng Securities, the parent company of TF International, incorporated green finance into its core development strategy as early as 2016. As the first securities firm in China to establish a green finance division, it is an advocate and pioneer in the field of green investment. Sharing the same development approach of its parent company, an ESG-led sustainability vision is deeply rooted in TF international's DNA. The launch of the ChinaBond TFISEC ESG Selected Chinese Offshore USD Bond Index will effectively facilitate both onshore and offshore investments, and further satisfy the growing demand of investors for high-quality and reliable Chinese USD bond index products with sustainability potential.
In tandem with the launch of the Index, TF International also plans to launch an ETF product to track the Index in the near term. The new offering will mainly track passive products. Collaboration and selling targets include onshore and offshore entities, particularly European and American green fund entities and Chinese entities, with the aim of offering a more diversified and robust portfolio to the market. The Index may be listed on overseas exchanges in the future. Research and negotiations are now under way.
Soaring tide of ESG investing places emphasis on both onshore and offshore capitals
In recent years, there have been increasing concerns and conversations about environmental issues internationally. The three pillars of sustainability represented by ESG, that are environmental, social and governance, have become an important consideration for the global investment market. The ESG investment market is changing rapidly. By the end of 2020, global equity and fixed income ESG-themed ETFs totaled over USD150 billion, up 85% from the end of 2019.
Yifan AO, Director of China Central Depository & Clearing Co., Ltd. ("CCDC") and Chairman of ChinaBond Pricing Center, said, "Currently, the idea of sustainable development has become a global consensus. As a key national financial infrastructure, CCDC actively pursues green development by inventing the classification concept of 'Real Green' bonds, taking the lead in running the ChinaBond - Green Bond Environmental Benefits Information Database, as well as compiling and launching a series of green bond indices. The ChinaBond TFISEC ESG Selected Chinese Offshore USD Bond Index launched in cooperation with TF international is an innovative outcome of our deepening collaboration in the field of green finance. In the future, the creation of index-related products will help guide onshore and offshore funds to serve the green and sustainable sectors, enhance the global resource allocation capacity of Chinese entities, and improve the quality and efficiency of finance in serving the real economy."
Yong WANG, Chairman and President of TF International, remarked, "The launch of ChinaBond TFISEC ESG Selected Chinese Offshore USD Bond Index aims at facilitating the participation of high-quality onshore companies in the internationalisation of China's capital market while further improving the offshore financing efficiency of Chinese enterprises so as to bring more high-quality capital into China and support the development of the real economy. For onshore issuers, taking the initiative to comply with an ESG framework in their daily operations can effectively improve their offshore financing efficiency and drive enterprises to pursue all-round and sustainable ESG development. For offshore investors, ESG-related indicators can also help them effectively screen out high-quality businesses and obtain solid investment gains, forming a virtuous cycle of continuous mutual benefits between underlying investments and investors."
Currently, Tianfeng Securities Co., Limited has a BBB rating from MSCI ESG Ratings, outperforming 67% of its global peers. In terms of ChinaBond ESG Evaluation, it has an ESG score of 8.
About TF International
Established in Hong Kong in 2015, TF International Securities Group Limited ("TF International" or "the Company") is a wholly-owned subsidiary of Tianfeng Securities Co., Limited (Stock Code: 601162.SH). Through its subsidiaries, TF International holds SFC Type 1, 2, 4, 5, 6 and 9 licenses to strategically diversify its business across a variety of sectors such as wealth management, institutional investment banking, financial market and asset management.
The Company offers turnkey financing services to enterprises, including financial advisory, stock capital market and bond market financing; as well as secondary market trading opportunities to clients through its own one-stop trading platform and professional investment information portal. Meanwhile, it provides asset management of secondary market funds and primary market projects for high-quality enterprises and financial institutions around the world by customising asset allocation solutions based on their actual circumstances to attract quality capital.
TF International has grown to become an important leader and player in the Chinese onshore USD bond market. It holds a dominant position in the issuance of Chinese USD bonds and assets management.
Company website: https://www.tfisec.com/
About ChinaBond Pricing Center and ChinaBond Index
ChinaBond Pricing Center, a wholly-owned subsidiary of China Central Depository & Clearing Co., Ltd. ("CCDC"), is a benchmark pricing platform built by CCDC based on its neutrality and professionalism as a central securities depository after more than two decades of dedication. ChinaBond Index has become an important reference indicator for the RMB bond market. Onshore bond funds with ChinaBond index as the performance benchmark and underlying investment total about RMB3.2 trillion, accounting for more than 80% of the market.
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