SHANGHAI, Jan 6 (Reuters) - China will explore the use of green bonds as collateral in repo borrowing and allowing foreign investors to participate in the sector, a senior central bank official said on Friday.

China will continue to improve liquidity and market pricing capabilities of the green assets to allow more domestic green bonds to be included in global indexes, Xuan Changneng, deputy governor of the People's Bank of China (PBOC), told a forum.

Xuan also said China will study and push forward cross-border green bond trades. (Reporting by Shanghai Newsroom; Editing by Tom Hogue)