China Property Crash Is Hurting Niche Pocket of ESG Finance.

China's property market downturn is impacting the issuance of ESG-labeled securitized debt in the Asia Pacific region. Data shows that there has been an 86% drop in the issuance of securities tied to climate or social objectives, with only $2.8 billion raised in the first half of the year. The cooling housing market in China has resulted in fewer loans available for green securitizations. Additionally, greater scrutiny of ESG labeling and the lack of regulation in Asia may also be contributing factors. Chinese developers and Korea Housing Finance Corp., major issuers in previous years, have been absent in 2024. However, China's EV producers have been supporting issuance in the region. [Extracted from the article]