Research On The Causes And Effect Of Green Bonds For Environmental Protection Industry

In recent years,with China’s economic growth,industrialization and urbanization,environmental pollution and resource loss have become increasingly serious.Nowadays,the society and the public are paying more and more attention to the issue of energy conservation and environmental protection,and the government is also paying more and more attention to the issue of environmental governance and energy conservation and emission reduction.Numerous policies have been introduced to vigorously promote the national green industry.In 2017,the 19 th National Congress of the Communist Party of China mentioned that China will forge a green economic development path,move forward steadily,and achieve the goals of economic transformation at all stages.In 2020,the Central Committee of the Communist Party of China(CPC)repeatedly specified that the country should reach the target of carbon peak by 2030 and carbon neutral by 2060.As a financial instrument that can support the development of green economy in the market,green bond has gained more and more attention.Under the background of the government’s strong support for the development of green industries and green bonds,the environmental protection industry is taking advantage of the trend.The phenomenon of limited financing channels and relatively high financing costs inherent in the industry is expected to be further alleviated and improved.The purpose of the environmental protection industry to improve and strengthen environmental protection is very consistent with the green property of green bonds.If the environmental protection industry can make reasonable use of the advantages brought by green bonds,green bonds are expected to bring new ideas to the financing of the environmental protection industry.Based on the above background,the case object chosen in this paper is Xingrong Environment,a leading water environmental protection company in western China.Xingrong Environmental has the largest scale of water supply and drainage in western China,and its green bond issued in 2019 is also the largest green corporate bond issued by the industry in recent years.The study of the company’s green bond is of good reference significance.This paper first expounds the research background of green bonds issued by environmental protection industry,the concept and classification of green bonds and the relevant theories involved in corporate financing,and then introduces the general situation of green bonds issued.On this basis,this paper introduces the case company Xingrong Environment,introduces the company background and relevant information of issuing green bonds,and analyzes the motivation and possible risks of issuing green bonds.In the aspect of stock price effect and financial effect of green bond issued by Xingrong Environmental,the event study method and key financial index analysis method are used respectively to analyze.Through the analysis and research,it is found that Xingrong Environmental has enjoyed the preferential policies of the government in issuing green bonds,and used the low financing cost to meet its huge capital demand and promote the expansion and development of the company.At the same time,after the issuance of green bonds,Xingrong Environment has shown a good financial effect,which is conducive to the promotion of the company’s reputation and market value,and is of great benefit to the establishment and development of the company’s long-term image.Finally,based on the above case analysis and conclusion,this paper puts forward the following suggestions for the possible risks and problems in the issuance of green bonds from the perspective of the government and enterprises: At the government level,the government needs to refine the criteria of green bonds and improve the legal construction;And improve the third-party certification,strengthen the certification professional;At the enterprise level,the enterprise should improve the project operation,reduce the solvency risk;And in response to government requirements,improve information disclosure.I hope that the above suggestions can contribute to the development of green bonds.