There are signs that fixed income investment funds have increased their risk taking in recent years via a higher asset allocation to lower-rated debt securities and an increased duration in their fixed income portfolios. At the same time, there is evidence that redemption patterns can be procyclical, which can foster adverse market dynamics when asset prices are declining.
Green finance has great potential as more countries commit to carbon neutrality. The PBOC will focus on the following priorities to better support green recovery and green transition. First, we will further improve green finance standards to support the carbon neutrality objective.