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HK Exchange Signs up HSBC, Tencent to Carbon Market Plan

Hong Kong Exchanges and Clearing has also enlisted Standard Chartered, BNP Paribas and the Bank of China to help develop a global carbon market


Hong Kong Stock Exchange could reap billions if more firms follow Alibaba and do a dual listing in the city.
More Chinese companies are expected to follow the lead of Alibaba, which announced on Tuesday that it would upgrade its secondary listing in Hong Kong to a dual primary listing. Photo: Reuters.

 

Hong Kong’s stock exchange has signed up a host of banks including HSBC and Chinese tech giant Tencent to help it develop a global carbon market.

Hong Kong Exchanges and Clearing Ltd (HKEX) said in a statement that it was setting up the Hong Kong International Carbon Market Council but did not reveal a market launch date.

Six international and Chinese lenders – HSBC, Standard Chartered, BNP Paribas, ANZ, Industrial and Commercial Bank of China and Bank of China – are among the inaugural members, HKEX said.

 

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Hong Kong’s Cathay Pacific Airways and Chinese tech giant Tencent are also members of the council, which HKEX CEO Nicolas Aguzin said would “play a vital role in supporting our vision to build a leading carbon market.”

“This is a significant step forward in our collective journey to achieving net zero,” Aguzin added.

Worldwide efforts to combat climate change have spawned voluntary carbon markets, which allow emitters to offset their carbon by purchasing so-called credits, which are issued by projects targeted at removing or cutting emissions.

Singapore in May 2021 said it aimed to roll out a global marketplace and exchange for quality carbon credits this year. Named Climate Impact X, it was a joint venture between Singapore Exchange, DBS Bank, and sovereign fund Temasek.  

 

  • Reuters with additional editing by Sean O’Meara

 

Read more:

China Oil and Gas Firm Readies First Offshore Carbon Capture Site

Singapore’s OCBC in Deal to Offer Tokenised Carbon Credits

China Urged to Woo Foreign Green Investors With Carbon Scheme

 

 

Sean O'Meara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.

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