April 27, 2021
Central Bank Governor Yi Gang said that Chinese financial institutions will have to commit to green finance as soon as possible to meet the country's climate goals. President Xi Jinping has made it clear that the country wants to hit peak emissions pre 2030 and neutrality by 2060. The central bank wants financial institutions to be an integral part of this change and is introducing new measures to ensure they hit their target. The central bank will target ratings, deposit insurance rates, and macroprudential policies. It will also incentivize green bonds and direct climate change stress tests for the macroeconomy. The details of these plans will be unveiled this year to meet the country’s carbon requirements ASAP.
FINSUM + Magnifi: China’s central bank and regulators are not hesitant to step in, and in this case, it will be to reduce emissions. However, if the incentives are mainly positive in measure it could mean good things for Chinese financial institutions.
Magnifi is changing the way we shop for investments, with the world’s first semantic search engine for finance that helps users discover, compare and buy investment products such as ETFs, mutual funds and stocks. As of April 2021, 300,000+ users with $500+ Billion in Assets Under Influence, have used Magnifi over 1,500,000 times. Try it for yourself today.
This blog is sponsored by Magnifi. The information and data are as of the publish date unless otherwise noted and subject to change. This material is provided for informational purposes only and should not be construed as individualized investment advice or an offer or solicitation to buy or sell securities tailored to your needs. This information covers investment and market activity, industry or sector trends, or other broad-based economic or market conditions and should not be construed as investment research or advice. Investors are urged to consult with their financial advisors before buying or selling any securities. Although certain information has been obtained from sources believed to be reliable, we do not guarantee its accuracy, completeness or fairness. Past performance is no guarantee of future results. This content may not be reproduced or distributed to any person in whole or in part without the prior written consent of Magnifi. [As a technology company, Magnifi provides access to tools and will be compensated for providing such access. Magnifi does not provide brokerage or custody services.]