China Green Taskforce Report: Green IPOs

Country Paper

Authors: Green Finance Task Force   

Published By: UNEP Inquiry    Research Bureau of the People's Bank of China   

Date: Apr 2015

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China Green Taskforce Report: Green IPOs

Developing innovative and growing green industry sectors in China depends on broadening funding source beyond government loans to capital markets. One of the major bottlenecks for entering the stock market for Chinese green enterprise today is the slow IPO process. The paper recommends that the CSRC simplify the IPO review and approval processes for green enterprises, in particular by:

  • Develop a green channel for enterprises waiting for IPO review, with at least one day of each week should be dedicated to the review of IPO applications from green enterprises.
  • Allow  greater flexibility in the types of project that a green enterprise can invest in using the proceeds raised in the IPO process – for example to replenish their working capital or repay bank loans.

[NB: This paper is one chapter of the broader report “Establishing China’s Green Financial System” developed by the China Green Finance Task Force, which was convened by the Research Bureau of the People’s Bank of China together with the UNEP Inquiry]

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