Common Ground Taxonomy (CGT) map the commonalities between EU’s Sustainable Finance Taxonomy and China’s Green Bond Endorsed Project Catalogue. We document that the yield spreads of CGT-labelled bonds are about 5.89 basis points lower than that of comparable non-CGT-labelled green bonds in China. The CGT premium is more pronounced when the green bonds are labelled at issuance. Further analyses show that the impact of CGT labelling on bond pricing is more pronounced when the issuers have lower ESG rating and more foreign institutional investors. In addition, we find that both the amounts of subscription in the primary market and the liquidity in the secondary market are higher for CGT-labelled bonds comparing with other green bonds.