Whether There Is Green Incentive In China’s Investment Fund Market

Along with the adjustment of economic structure and the transformation of development mode,accelerating the reform of green economy system has become a country’s important development strategy,and the investment and financing requirements of green industry also rise accordingly.At the same time,under the traditional financing mode,"green enterprises" whose main business is environmental protection and energy saving are often faced with difficulties in financing and high financing costs.In this case,green industry investment funds emerged and developed rapidly.Investors also incorporated non-financial factors such as environmental governance and ecological protection into their investment decisions,so as to practice responsible investment and sustainable investment,so as to promote the sustainable development of enterprises and society.Therefore,it is of great significance to study how to evaluate the concept and practice of green development for guiding the capital flow to the field of sustainable development.Through the elaboration of the development of green industry and green finance and the background and significance of relevant academic research,this paper defines the concepts of green incentive,the evolution of green investment connotation,the theories related to sustainable development of enterprises and the unique costs and risks of green enterprises.On this basis,it analyzes the influence mechanism of six factors on excess returns.Then,the green fund related to energy conservation and environmental protection is selected as the research object.Based on the Fama-French five-factor model,the green factor is introduced to construct a new six-factor model,Verify the applicability of this model in the fund investment market and whether the green factor has a significant positive effect on the excess rate of return.Finally,based on theoretical analysis and empirical analysis,relevant suggestions are put forward from three aspects: green enterprise,green investment market and investors.The empirical results of this paper show that the six-factor model with green factor is suitable for China’s green fund market and the green factor has a significant positive effect on the excess return,that is to say,there is a green incentive effect in China’s investment fund market.The conclusion of this paper has reference significance for investment strategies under the new economy,and also indicates that China’s investment fund market needs a more professional green rating system.