The Stock Price Effect Of Green Bonds Issued By Zijin Mining

In the context of carbon neutrality and carbon peaking,enterprises are facing great challenges,and while carrying out their main business,they also shoulder the green mission of helping low-carbon transformation and using green development to boost their core competitiveness.As one of the main tools of green finance policy,the green bond market has seen a booming development globally and in China,providing strong support for green industrial investment projects,effectively mitigating the risks brought by climate change and making important contributions to the realization of global sustainable development.After the outbreak of the epidemic,China’s green bond market did not stagnate,but instead grew rapidly in terms of scale and volume.With the steady development of the green bond market and regulatory policies following international trends,it is now more important to pay attention to the quality of green bond development and its micro impact on issuing enterprises.Based on this,an in-depth discussion on how the issuance of green bonds affects enterprises,especially their stock markets,can not only assess the effectiveness of green finance policies,but also provide more financial support for green projects,thus better promoting sustainable development.Zijin Mining is the leading precious metals industry in China.As a capital and resource-intensive industry,most companies in the precious metals industry are characterized by brash development in the early stages of development,with high energy consumption and pollution accompanying the production process,often resulting in huge pollution of the environment,while the social image of the company is also affected as a result.With the increasing emphasis on socially responsible investment,the concept of green development is gaining weight in the evaluation of companies by investors.Stock market as a market of information,the green behavior of enterprises often transmits corresponding signals that ripple to the share price of enterprises.Taking Zijin Mining’s green bond issuance as an example,this paper explores its background and motivation,and analyzes the impact on stock price within21 event days before and after the green bond issuance,in order to explore whether the green bond issuance can bring positive stock price effect to the company,and further analyzes the difference of the two markets’ reaction to the same event,taking into account the dual characteristics of the company’s A-share and H-share listing.The following conclusions are drawn from the case study of Zijin Mining: First,Zijin Mining issued green bonds in the context of improving its social image,seeking green transformation and financing constraints,and the bond issuance had a positive effect on its share price in the short term.Second,based on the performance of this event on the role of share price in different markets,it is found that the H-share market is more sensitive to green information and the positive effect of share price is advanced,and the difference of cumulative excess return rate with peer companies in the H-share market is larger compared with the difference of CAR of Zijin Mining and peer companies in the A-share market.Third,analyzing from socially responsible investment and reputation theory,in the stock market,investors may pay more attention to companies issuing green bonds due to the green warming effect,and issuing green bonds may send higher signals of environmental performance,government earnings and disclosure quality,which may have a positive impact on stock prices.Therefore,this paper proposes several suggestions on the development of green bonds based on the above findings,aiming to provide a marginal contribution to the development of green bonds and the transition of polluting firms to issue green bonds.