TF International and ChinaBond Pricing Center Jointly Launch the First ESG-themed Chinese Offshore USD Bond Index to Effectively Drive the Development of Green and Sustainable Financial Markets and Facilitate the Financing of High-quality Enterprises

HONG KONG SAR – Media
OutReach – 30 November 2021 – TF International Securities Group Limited (“TF
International” or “the Company”), a wholly-owned subsidiary of Tianfeng
Securities Co., Limited (Stock Code: 601162.SH), and ChinaBond Pricing Center Co., Ltd. (“ChinaBond Pricing Center”) today
jointly launched the ChinaBond TFISEC ESG Selected Chinese Offshore USD Bond
Index (“the Index”), the first ever environmental, social and governance (“ESG”)
themed Chinese USD bond index compiled and launched within China. It aims at
facilitating both onshore and offshore investments, as well as guiding onshore
and offshore funds to serve the green and sustainable sectors with the goals of
achieving Carbon Dioxide Emissions
Peak and Carbon Neutralization. In the long
run, it is expected that more than RMB100 trillion of low-carbon investment
needs will be satisfied by stimulating ESG investing.

From left to right: Mr. Chuan ZOU, CEO of TF International; Ms. Christine WILLIAMS, Deputy Global Head of Family Office of InvestHK; Mr. Lei YU, Chairman of Tianfeng Securities, as well as Mr. Yong WANG, Chairman and President of TF International.

Using fair and objective screening criteria, selected issuers are primarily
from traditional real sectors

The ChinaBond TFISEC ESG Selected Chinese Offshore USD Bond Index is
screened for the entire Chinese USD bond market, which
includes a total of 2,213 Chinese USD bonds that are potentially eligible
for inclusion. The screening criteria are based on
the ChinaBond ESG Evaluation published by ChinaBond
Pricing Center, that is, issuers are grouped according to the Center’s industry
classification standard before bonds issued by the top 30% issuers in term of
ESG rating in each industry are selected for compilation. Constituent bonds are
reviewed and adjusted on a monthly basis. Information about the Index can be
found on www.ChinaBond.com.cn.

The Index covers 12 traditional industries, including finance,
construction and real estate that constitute the largest part of the Index
in order as
follows: 46%, 18% and 12%. Underlying companies include Chinese enterprises
such as Bank of China (3988.HK), Bank of Communications (3328.HK), Poly Real Estate
(600048.SH) and China State Construction (3311.HK). As of the end of October 2021,
the Index is comprised of more than 360 Chinese USD bonds, accounting for about
20% of the overall Chinese USD bond market.

The Company of great vision gets a head start in the green finance space

Tianfeng
Securities, the parent company
of TF International, incorporated green finance into its core development
strategy as early as 2016. As the first securities firm in China to establish a
green finance division, it is an advocate and pioneer in the field of green
investment. Sharing the same development approach of its parent company, an ESG-led
sustainability vision is deeply rooted in TF international’s DNA. The launch of
the ChinaBond TFISEC ESG Selected Chinese Offshore USD Bond Index will effectively
facilitate both onshore and offshore investments, and further satisfy the
growing demand of investors for high-quality and reliable Chinese USD bond
index products with sustainability potential.

In tandem with the launch of the Index, TF International also plans to
launch an ETF product to track the Index in the near term. The new offering will
mainly track passive products. Collaboration and selling targets include
onshore and offshore entities, particularly European and American green fund
entities and Chinese entities, with the aim of offering a more diversified and robust
portfolio to the market. The Index may be listed on overseas exchanges in the
future. Research and negotiations are now under way.

Soaring tide of ESG investing places emphasis on both onshore and
offshore capitals

In recent years, there have been increasing concerns and conversations
about environmental issues internationally. The three pillars of sustainability
represented by ESG, that are environmental, social and governance, have become
an important consideration for the global investment market. The ESG investment
market is changing rapidly. By the end of 2020, global equity and fixed income
ESG-themed ETFs totaled over USD150 billion, up 85% from the end of 2019.

Yifan
AO, Director of China Central Depository & Clearing Co., Ltd. (“CCDC”) and Chairman
of ChinaBond Pricing Center, said,
“Currently, the idea of sustainable development has become
a global consensus. As a key national financial infrastructure, CCDC actively pursues
green development by inventing the classification concept of ‘Real Green’
bonds, taking the lead in running the ChinaBond – Green Bond Environmental Benefits
Information Database, as well as compiling and launching a series of green bond
indices. The ChinaBond TFISEC ESG Selected
Chinese Offshore USD Bond Index launched in cooperation with TF international
is an innovative outcome of our deepening collaboration in the field of green
finance. In the future, the creation of index-related products will help guide
onshore and offshore funds to serve the green and sustainable sectors, enhance
the global resource allocation capacity of Chinese entities, and improve the
quality and efficiency of finance in serving the real economy.”