A Comparative Study On The Market Performance Of Green Bonds And Traditional Bonds Under The Influence Of Green Finance Policy

In recent years,the impact of global warming,environmental pollution and a series of other ecological problems have aroused widespread concern around the world.Under this background,concepts such as green development and green economy have been put forward one after another,and green finance has become an important tool for green development.As one of the innovative practice forms of green finance,greenbonds provide a direct channel for green projects to obtain medium and long-term,low-cost financial support.Over the years,with the aim of guiding and encouraging various entities to increase their investment in green bonds on a large scale and bring into play the environmental protection function of green bonds,China has issued a number of green bond policies,releasing favorable signals to the market for green bonds.So,under the guidance of the green bond policy signals,will investors favor green bonds more? Will they reduce their investment in non-green traditional bonds?The study of this issue not only provides reference for investors’ investment decision,but also enables enterprises to understand the market recognition of green bonds,thus improving the efficiency and increasing the scale of green bond issuance;at the same time,policy makers can observe the policy effect and the development of green bond market,and then adjust and improve the management policy of green bonds in a targeted manner.This is important for the sustainable development of green bond market.In order to reveal whether bond investors show preferences for green investment guided by the favorable information of green bond policies,this paper takes the release of the Green Bond Support Project Catalogue(2021 Edition)as an event and uses the event study method to study the difference between the respective maturity yields of green bonds and traditional bonds of high pollution industries and the risk-free treasury bonds of the same maturity(referred to in this paper as "credit spread"),comparing and analyzing the changes generated in the credit spreads of the two types of bonds before and after the event.Through the study,it is found that: first,there exists a significantly negative cumulative abnormal credit spread for green bonds during the event window period,and the credit spread for green bonds after the event is observably lower than that before the event;while there exists a significantly positive cumulative credit spread for traditional bonds in high pollution industries,and its credit spread after the event is observably higher than before;the impact of the event on the credit spreads of the two types of bonds is significantly different,and bond investors show an investment in green bonds bond investors show a preference for green bonds.Second,compared to SOEs,green bonds issued by private enterprises have more significant negative cumulative abnormal credit spreads during the event window,and credit spreads fall more;while credit spreads of traditional bonds issued by private enterprises belonging to highly polluting industries show a more pronounced upward trend,which reflects the negative market expectations for such bonds,and credit spreads of bonds issued by private enterprises are more susceptible to policy influence The credit spreads of bonds issued by private enterprises are more susceptible to policy influence and volatility.Third,there is no significant difference in the impact of events on credit spreads of green bonds with or without third-party green certification.For the specific situation in China,combined with the research findings,this paper propose policy suggestions about promoting the sustainable growth of the green bond market.