The Development Of Special Corporate Bonds For Poverty Alleviation

Targeted poverty alleviation is one of the three major battles in China to win a comprehensive well-off society.As a method of poverty alleviation and development,financial poverty alleviation which has combined the way of "blood transfusion" with "blood production" plays an increasingly important role in poverty alleviation in China.The research results of the winners of the 2019 Nobel Prize in Economics point out that not all the poor are born entrepreneurs,since they lack the ability to use resources and earnings effectively.Therefore,the effect of financial poverty alleviation products directly to the poor,is very limited.With the development of China ’s capital market,policies have begun to support the issuance of security poverty alleviation products.This kind of financial poverty alleviation products which can help the economic growth of poor areas and increase the employment as well as the income of poor people by meeting the development needs of enterprises in poor areas has more obvious poverty alleviation effect.The special corporate bond for poverty alleviation studied in this article are one of the security poverty alleviation products.The research of this paper is mainly divided into four parts.Firstly,by reading relevant literatures the concepts,theories,and mechanisms of financial poverty alleviation are analyzed and the existing financial poverty alleviation products are systematically summarized in accordance with China’s national conditions.Secondly,the concept of special corporate bonds for poverty alleviation is defined and related policies are sorted out and the current state of development of the market is studied with a focus on analyzing whether the policies are effective and finding out the problems existing in the current market development.Thirdly,taking the special corporate bond for poverty alleviation issued by Hongshi Group in 2018 as an example,this paper focuses on analyzing the impact of this issue of the bond on the enterprise and the poverty alleviation effect of the project supported by the bond’s fund in poor areas and summarizes the operating model and characteristics of the case.Finally,combined with the content of theoretical analysis,current situation analysis and case analysis,the conclusions of this paper are drawn,experience of the case is obtained and recommendations for further improvement of the policies related to special corporate bonds for poverty alleviation are put forward.Through the analysis of the full text,the following conclusions are drawn: Firstly,the special corporate bond for poverty alleviation is a market-oriented investment and financing product with policy-oriented financial characteristics,which achieves poverty alleviation effects through the indirect path of financial poverty alleviation.Secondly,China’s special corporate bond market for poverty alleviation has initially developed,but the related policies lack effectiveness and there are problems of incomplete policy system and insufficient publicity.Thirdly,the issuance of the bond in the case satisfies the needs of the company’s own business and brings reputational benefits for the enterprise to undertake social responsibility for poverty alleviation.The project promotes the employment of the poor,drives economic development,and promotes infrastructure construction,which has achieved a significant poverty alleviation effect.The company adopts a series of effective measures in energy conservation and environmental protection to ensure the quality and sustainability of poverty alleviation.