Core Viewpoint - The report highlights the continuous deepening of China's green finance system, with local pilot projects accelerating, market scale steadily expanding, and innovative products emerging, providing strong financial support for the "dual carbon" goals [1]. Group 1: Policy Dynamics - In the first five months of 2025, numerous green finance policies were introduced, with central and local efforts working in tandem to accelerate the formation of a multi-level green finance system [2]. - Shanghai has established a "1+N+X" green finance organizational structure, while Jiangsu has launched a "1+N+N" transformation financial support directory targeting eight high-carbon industries [2]. - The National Development and Reform Commission released a new version of the "Green Technology Promotion Directory," covering 112 low-carbon technologies [2]. - China successfully issued 6 billion yuan in green sovereign bonds on the London Stock Exchange, indicating strong international market recognition of Chinese green assets [2]. Group 2: Market Data - In the first five months of 2025, China's green finance market maintained high activity levels, with 236 new green bonds issued, totaling 411.03 billion yuan [3]. - The balance of green loans reached 40.61 trillion yuan by the end of March 2025, reflecting a year-on-year growth of 34.2% [3]. - The national carbon market saw a trading volume of 22.74 million tons and a transaction value of 1.751 billion yuan from January to May [4]. Group 3: Innovation and Product Diversification - In May 2025, several innovative green finance products were launched, including the first "green + rural revitalization + dual basin" labeled bond [5]. - Agricultural Development Bank introduced the "twin green bond" mechanism, exploring market comparisons between green and ordinary bonds [5]. - Industrial and Commercial Bank launched a multi-currency carbon-neutral offshore bond, focusing on clean transportation and renewable energy projects [5]. Group 4: Outlook - Green finance is becoming a key engine for high-quality economic development, with expectations for further advancements in climate investment and financing trials, unified ESG standards, and continuous industrialization of green technologies [6][7].

Core Insights - Hong Kong's Treasury Bureau reported that by March 31, 2025, there will be 218 ESG funds recognized by the Hong Kong Securities and Futures Commission, with an asset management scale of approximately $139.2 billion (around HK$1,085.7 billion) [1] - In 2024, the total amount of green and sustainable debt issued in Hong Kong is expected to exceed $84 billion (approximately HK$65.52 billion), with around $43 billion (about HK$33.54 billion) arranged for issuance in Hong Kong, maintaining the leading position in the Asia-Pacific region for seven consecutive years, accounting for about 45% of the regional total [1] - The Hong Kong government is committed to promoting green and sustainable finance through a multi-faceted strategy, collaborating with financial regulators and the industry to provide infrastructure and momentum for market development [1] Group 1: Market Development - The Treasury Bureau continues to encourage more green and sustainable financing activities in Hong Kong through the "Green and Sustainable Finance Grant Scheme," attracting more financial and professional service providers to establish a comprehensive ecosystem for green finance [2] - As of the end of April this year, over 560 green and sustainable debt instruments have been funded under the scheme, involving a total debt amount exceeding $150 billion (or HK$1,170 billion) [2] Group 2: Sustainable Disclosure - The Treasury Bureau launched the "Hong Kong Sustainable Disclosure Roadmap" in December last year, providing a clear path for large public accountability entities to fully adopt ISSB standards by 2028, making Hong Kong one of the first jurisdictions to align local standards with international financial reporting sustainability disclosure standards [2] - The Hong Kong Stock Exchange has begun phased implementation of new climate information disclosure regulations based on ISSB Standard No. 2: Climate-related Disclosures since January this year [2] Group 3: Skills Training and Collaboration - The Treasury Bureau continues to promote the "Green and Sustainable Finance Training Pilot Scheme," encouraging local qualified practitioners, relevant professionals, and students to participate in training, with over 6,400 successful applications for funding amounting to approximately $35.8 million as of April this year [3] - The pilot scheme will be extended until 2028, with 92 eligible training courses and qualifications provided by local universities, professional institutions, and international training organizations [3] - Hong Kong will host the second "Hong Kong Green Week" in September this year, themed "Building a Sustainable Future Together," covering various sustainable development topics through meetings, roundtable discussions, workshops, and other exchange activities [3]