China's Second Sovereign Green Bond Raises RMB 6 Billion with 10x Oversubscription

China's Ministry of Finance completed its second-ever central government green bond offering, raising RMB 6 billion (USD $887 million) for environmental initiatives including clean transportation, pollution reduction and water management. The issuance drew an order book of RMB 62.4 billion (USD $9.2 billion), more than 10 times oversubscribed.

The offering comprised two tranches: a RMB 3 billion 3-year bond oversubscribed 9.8 times and a RMB 3 billion 5-year bond oversubscribed 11 times. The bonds were listed on the Stock Exchange of Hong Kong. Proceeds will be deployed to eligible categories under China's Sovereign Green Bond Framework, including Clean Transportation, Sustainable Water and Wastewater Management, Pollution Prevention and Control, Marine Ecosystem Protection and Restoration, and Resource Utilization and Recycling.

The issuance follows China's inaugural sovereign green bond in April 2025, which also raised RMB 6 billion and was listed on the London Stock Exchange, drawing an order book of RMB 47 billion. The strong demand for the second issuance, and the increase in oversubscription ratio, signals sustained institutional appetite for Chinese sovereign green paper. The Hong Kong listing is designed to enhance the offshore RMB bond yield curve and provide an investment benchmark for international capital.

Hong Kong Financial Secretary Paul Chan said the issuance supports cross-boundary RMB financing and trading activities and attracts global capital to China's high-quality green projects. For Asian fixed income investors, including those in India, Chinese sovereign green bonds provide a reference benchmark for regional green finance. The continued growth in China's sovereign green issuance program reflects broader efforts to channel state capital toward environmental priorities as the country pursues its 2060 carbon neutrality target.

Key figure — RMB 62.4 billion (USD $9.2 billion) order book