Scholarlink

<p>To support China’s low-carbon transition and green growth, carbon–neutral bonds have been issued since February 2021. Our survey of carbon–neutral bond issuance by Chinese firms from inception to December 2024 shows that these initial carbon–neutral bonds have significantly lower yield spreads, implying lower financing costs than conventional bonds issued by the same firms and green bonds issued during the same period. An event study analysis shows that stock returns increased after the announcement of carbon–neutral bonds. Stock liquidity is identified as the possible mechanism through which carbon–neutral bond issuance may improve stock returns, although stock liquidity could be reduced if a firm with good environmental, social, and governance (ESG) ratings issues carbon–neutral bonds. Our findings that a negative <i>carbon–neutral premium</i> exists highlight the role that future carbon–neutral bonds could play in benefiting Chinese firms issuing such bonds.</p>

错误：搜索内容不能为空，请输入英文关键词
错误：关键词超出字数限制，请精简
高级检索

Can Chinese firms benefit from issuing carbon–neutral bonds?

  • 期刊论文

  • 出版模式：

    开放获取

  • 发表日期：

    2026年3月2日

查看全文
  • Moran Wang,
  • Yuying Sun,
  • Shouyang Wang

摘要

To support China’s low-carbon transition and green growth, carbon–neutral bonds have been issued since February 2021. Our survey of carbon–neutral bond issuance by Chinese firms from inception to December 2024 shows that these initial carbon–neutral bonds have significantly lower yield spreads, implying lower financing costs than conventional bonds issued by the same firms and green bonds issued during the same period. An event study analysis shows that stock returns increased after the announcement of carbon–neutral bonds. Stock liquidity is identified as the possible mechanism through which carbon–neutral bond issuance may improve stock returns, although stock liquidity could be reduced if a firm with good environmental, social, and governance (ESG) ratings issues carbon–neutral bonds. Our findings that a negative carbon–neutral premium exists highlight the role that future carbon–neutral bonds could play in benefiting Chinese firms issuing such bonds.