According to a report in the European edition of the China Daily, the National Development and Reform Commission is encouraging Chinese businesses to issue catastrophe bonds to soften the impact of climate change.
The commission has also called for initiatives to attract more foreign capital, as well as innovative financing methods including the development of insurance products for the agricultural and forestry industry.
Catastrophe bonds are risk-linked securities that transfer risks to investors who speculate on the outcome. They were first used in the aftermath of Hurricane Andrew in 1992.
China has been expanding its financial services offering in recent months. In November the Chinese Securities Regulatory Commission signed a memorandum of understanding with the Guernsey Financial Services Commission.
