China's issuance of its first Renminbi-denominated green sovereign bonds on the London Stock Exchange on Wednesday represents a strategic leap in global sustainable finance and currency internationalization, said a Chinese economist.
According to the Ministry of Finance, it successfully completed the bookbuilding and issuance of six billion yuan (around 825.52 million U.S. dollars) in green sovereign bonds in London on behalf of the central government.
This bond issuance delivers on commitments made during January's China-UK Economic and Financial Dialogue in Beijing.
To support this initiative, the ministry released a framework for sovereign green bonds in February, paving the foundation for the country to issue offshore sovereign green bonds and global capital to invest in its green development.
"The issuance is open to international investors, providing them with clear and standardized investment guidelines. It shows China's open attitude. This is about setting international standards. By issuing a bond that it needs, China is actively engaging in setting an international standard," said Zou Jingxian, an associate professor of the National Academy of Development and Strategy under Renmin University of China.
The move also comes as global demand for green sovereign bonds continues to grow, with such instruments typically enjoying strong investor appetite and favorable interest rates.
"The green transformation is critical for China's economy and also meets the public growing demand for a better quality of life. The funds raised through these bonds will be allocated to specific areas like green innovation, renewable energy. Second, it can boost international confidence in China's economy. We know that confidence is important for one economy. By issuing green sovereign bonds, China can attract more international capital," said Zou.
China issues first RMB green bonds in London, advancing global sustainable finance: expert
China will continue to implement a series of more proactive and effective macro policies in 2026 to keep driving the country's economic development, said one of the drafters of the government work report, which was submitted Thursday to the country's top legislature for deliberation.
Chen Changsheng, also deputy director of the Development Research Center of the State Council, made the remarks at a press conference held in Beijing on Thursday.
Chen said one of the reasons for continuing implementing more proactive and effective macro policies is to respond to the external environment.
In 2026, China is facing significant uncertainty both at home and abroad, and the country is also confronting strong supply and weak demand, with a gap in its aggregate demand remaining, he said.
Chen said it is necessary for the country to step up policy adjustment and use the certainty of macro policies to offset the uncertainty.
"Compared with other countries around the world, China's overall government debt ratio, particularly that of the central government, remains relatively low. There is still room for cuts in required reserve ratios and interest rates. Besides, there is also room for innovation in the policy mix. At the same time, continuing these policies also aims to send a signal to the society of continuing regulation through macro policies," said Chen.
Chen said China's macro policies will be implemented with greater intensity and wider scope in 2026.
"The deficit-to-GDP ratio remains at 4 percent, a relatively high level in history. The net increase in the deficit stands at 230 billion yuan (over 33 billion U.S. dollars). The scale of newly added government debt comes in at 11.89 trillion yuan, also a record high. Additionally, this year's general budget is expected to exceed 30 trillion yuan. More importantly, its net increase will reach 1.27 trillion yuan. All these demonstrate the stability of our macro and fiscal policies. Similarly, monetary policy will continue to be appropriately accommodative. Besides, we will flexibly employ policies such as cuts to required reserve ratios and interest rates to ensure ample liquidity. We will also implement policies such as policy-based monetary and financial tools with greater intensity and wider scope, with an aim to reduce financing costs across the whole society and support the real economy," said Chen.
The macro policies will also be more targeted and effective, he said.
"In terms of fiscal policy, special emphasis has been placed on deepening zero-based budgeting reforms, with the inefficiently and poorly used funds to be reallocated to more effective areas. The reform had been implemented for a period of time last year and had achieved some results. This year, efforts will be intensified. Additionally, we will further optimize the expenditure structure and make better use of existing funds to boost consumption, invest in people, and increase spending in people's wellbeing. Structural monetary policies will be improved to support small and medium-sized enterprises (SMEs), tech enterprises, and the expansion of domestic demand," said Chen.
China to continue implementing more proactive, effective macro policies to drive economic growth in 2026: official
China to continue implementing more proactive, effective macro policies to drive economic growth in 2026: official
