HKEX rolls out sustainable exchange

The platform includes two ETFs managed by Mirae Asset and Haitong International.

Hong Kong Exchanges and Clearing (HKEX) has launched an investment platform that features only sustainable-themed products.

The Sustainable and Green Exchange (Stage) is Asia’s first multi-asset sustainable product platform, which was developed to support the growing demand for sustainable finance, according to a statement from HKEX.

“The opportunities in sustainable finance in Asia are growing rapidly. There is a need for information about sustainable products and ESG data, and we hope that Stagewill help meet that demand,” Wilfred Yiu, head of markets at HKEX, said in the statement.

Stage allows issuers to provide investors with more information on their sustainable investment products, promoting transparency and facilitating access. Issuers included on the platform much provide additional voluntary disclosures on their sustainable investment products, such as the use of proceeds reports, as well as annual post-issuance reports, according to the statement.

The additional data will act as a benchmark for issuers seeking to raise funds for their sustainable projects and will also contribute to the standardisation of sustainability metrics, according to the statement.

Currently, there are 29 products on Stage, including 27 ESG-focused bonds that are listed on the HKEX from 10 issuers and two ETFs, which are Mirae Asset Global Investments’ Global X China Clean Energy ETF (listed in January) and Haitong International Asset Management’s MSCI China A ESG ETF which was listed in October this year, data from HKEX shows.

Over time, the scope of the product repository will increase across asset class, industry, in Hong Kong and beyond, according to the statement.

“Ultimately, we aim to guide future capital flows to support our society’s transition towards sustainability. We are actively encouraging all regional issuers of green and sustainable products to consider application for inclusion on STAGE, in turn helping to build Asian financial markets’ own sustainability,” Grace Hui, head of green and sustainable finance at HKEX, said.

Globally, at least $30trn is invested in the sustainable finance market, but less than 1% of that is in Asia, according to the statement.