Research On The Factors Affecting The Credit Spread Of Green Bonds In China

China's economy has achieved rapid development and has become the second largest economy in the world today Since the reform and opening-up,but the problem of deterioration of the ecological environment has continued to emerge: frequent haze weather,severe soil and water pollution,and land desertification.These ecological and environmental problems have severely restricted the sustainable development of our economy.Therefore,it is particularly important to abandon the original extensive economic development model and seek a green and sustainable development model.Since the issuance of the first green bond in China in January 2016,green bonds,as an emerging financial instrument that can help companies raise long-term funds at a lower cost in the capital market,have developed rapidly in terms of scale and number of issues.The development and expansion of China's green bond market can not only meet the capital needs of enterprises for green development,but also allow investors to find investment opportunities in this emerging market.However,in recent years,default events in China's bond market have affected the enthusiasm of investors for participating in the green bond market,which in turn has caused some negative effects on the development of green bonds.In addition,the average domestic interest rate of green bonds is higher than the average interest rate of ordinary bonds,which increases the burden on green bond issuers.Therefore,the analysis of the factors affecting the spread of green bonds and ordinary bonds has the following three aspects:(1)It is beneficial for the issuers of green bonds to control costs.(2)Conducive to attracting investors to continue to invest in the green bond market.(3)It is beneficial for the regulatory authorities to manage the green bond market and prevent potential default risks in the green bond market.This article uses the green corporate bonds and green enterprise bonds published on China Financial Information Online from 2016 to 2018 as a research sample.The first explanatory variable selects the interest rate difference between green corporate bonds and ordinary corporate bonds of the same maturity,rating,and similar size.The second explanatory variable selects the interest rate difference between green enterprise bonds and ordinary corporate bonds of the same maturity,rating,and similar size,and introduces green certification dummy variables,issuer subject ratings,bond ratings,and corporate nature dummy variables.And other explanatory variables,using the currency issuance amount,market interest rate,company size,issuance period and scale as control variables,using the regression models of Yao Minglong(2017)and Huang Chao(2019)for regression analysis,and using green corporate bonds and green The spread between corporate bonds and government bonds over the same period is used as an explanatory variable to test the robustness in turn,making the empirical results of this paper more credible.This article uses the green corporate bonds and green corporate bonds published on China Financial Information Online from 2016 to 2018 as a research sample.The first explanatory variable selects the interest rate difference between green corporate bonds and ordinary corporate bonds of the same maturity,rating,and similar size.To show that the second explanatory variable selects the interest rate difference between green corporate bonds and ordinary corporate bonds of the same maturity,rating,and similar size,and introduces green certification dummy variables,issuer subject ratings,bond ratings,and corporate nature dummy variables.And other explanatory variables,using the currency issuance amount,market interest rate,company size,issuance period and scale as control variables,using multiple linear regression methods for regression analysis,and using green corporate bonds and green corporate bonds as the spreads of government bonds over the same period The robustness test as the explained variable makes the empirical results of this article more credible.According to the empirical results of this article,relevant policy suggestions are put forward:(1)Formulating authoritative and unified green bond assessment and certification requirements.At present,the requirements of different regulatory agencies in China for green certification are not completely the same,which has led investors to disagree with the existing green certification system.Therefore,the certification assessment requirements for green bonds in China must be standardized.(2)Establish a multi-level green bond market system.At present,China's green bonds are issued in China's stock exchanges and inter-bank bond markets,and their secondary trading markets are not complete.In addition,investment projects in the green industry sector have a larger investment amount than ordinary financing projects.Features such as a long development cycle and asset securitization can improve the investment effectiveness and accuracy of green industry investment projects.Therefore,a multi-level green bond market system must be established.The innovation of this article lies in: the innovation of the research object.When domestic scholars research the influencing factors of green bond spreads,they usually conduct a mixed analysis of different green bond varieties such as green corporate bonds,green corporate bonds,and green medium-term notes.This paper considers the issue of different types of green bonds.Differences in conditions and competent authorities,the separate analysis of the two types of green bonds,green corporate bonds and green enterprise bonds,makes this study more targeted;second,this paper introduces dummy variables of enterprise categories.When domestic scholars analyze the spread of green bonds,they have fully studied the macro factors,corporate financial factors,and individual bond factors.However,there is a lack of research on the category of enterprises,which may significantly affect green bonds.This article refers to the general related literature on corporate bond spreads studies the impact of corporate categories on the spreads of green corporate bonds and green enterprise bonds.