Motivation And Effect Analysis Of China Jushi’s Issuance Of 2019 Green Medium-term

Since the 21st century,environmental protection and low-carbon development have become hot spots.Green bonds,as a typical financial tool to practice the concept of green development,provide important financial support for the green development of all countries,and at the same time promote the green transformation of all countries,making important contributions to achieving the goal of low-carbon development.In this context,this paper selects China Jushi’s issue of 2019 green medium-term notes as the analysis object,studies the motivation and effect of its issue,summarizes the experience and enlightenment of the issue,and provides suggestions for other social subjects.Firstly,the development of green bonds is introduced,and the development trend of green bonds in recent years is analyzed.Secondly,the theory and related references used in this paper are introduced,and the latest research results are summarized.Then there is the concrete analysis of this case.Before the analysis,it introduces the main business and development of China Jushi,a case enterprise in this paper,and at the same time explains the specific situation of the 2019 green medium-term notes issued by China Jushi.After that,it makes a concrete analysis of this event,which focuses on the motivation and effect of this event.The motivation includes meeting the financing needs of enterprises,responding to the call of national green development,reducing the financing costs of enterprises and optimizing the debt maturity.Secondly,the effect analysis after the issuance,which mainly includes short-term stock price effect,financial effect and environmental benefit.As for the short-term stock price effect of enterprises,this paper uses the event research method to analyze the changes of stock price return before and after the issuance of enterprises.The analysis results show that the impact of China Jushi’s issuance of green medium-term notes on the stock price of enterprises is concentrated in two or three working days before and after the announcement date of the issuance of green notes.For the longterm financial situation of the enterprise,this paper first analyzes the changes of financial indicators of China Jushi in recent four years,analyzes the position of China Jushi in the industry,and finally obtains the financial score of China Jushi in the 10 quarters after its issuance by factor analysis as an evaluation index for the overall financial performance of the enterprise.The research shows that China Jushi has improved its profitability,operational ability and debt repayment ability after issuing green bills,and it has a certain competitive advantage in the same industry.In addition,the issuance of green medium-term notes by China Jushi has also produced certain environmental benefits,enhanced the confidence of enterprises in green development,further promoted enterprises to carry out green technological innovation and promoted their further development.Through the case analysis of this paper,it is concluded that green medium-term notes,as a new financing tool,play a positive role in enterprises and society,and the state should improve the issuance,evaluation and supervision of green bonds to protect the smooth issuance of green bonds.Finally,enterprises should actively use green debt financing tools to realize the synchronization of financing and development.