Research On The Pricing Of Green Bonds In China

Green bonds are an important component of the ESG concept.By issuing green bonds,enterprises can not only meet their financing needs but also actively undertake social responsibilities,which is beneficial for improving their social reputation.In China,green bonds started relatively late,but developed rapidly.After several years of development,the market size has jumped to the forefront of the world.However,there are also some problems that need to be solved in the rapid development.Therefore,this paper takes green bonds as the research object,analyzes the factors affecting the pricing of green bonds,calculates the intrinsic value of green bonds,and provides corresponding development suggestions for China’s green bonds.The specific research content is as follows: Firstly,this article reviews the previous research results and analyzes the results of previous literature research.In the analysis of factors affecting bond issuance pricing,many scholars in the past mostly chose multiple regression models for analysis,while there was less research on pricing models.At the same time,it also introduces the basic research ideas,innovation and feasibility of this article.Secondly,by analyzing the investment and issuance of green bonds,the theoretical basis for this study is proposed and the main pricing models for bonds at present are introduced;Once again,this article analyzes the influencing factors of green bond issuance interest rates,dividing them into green factors,macro factors,and micro factors.By constructing a multiple regression model,the impact of each variable on issuance interest rates is tested;At the same time,this article takes the "19 Yadi G1" as an example,and by constructing a pricing model,it is found that there is indeed an undervalued issuance pricing situation in China’s green bond market;Finally,based on the empirical results of this article,third-party certification in green factors has a significant effect on reducing the issuance interest rate of green bonds.Factors such as market interest rate,bond rating,scale,and maturity have a significant impact on the issuance interest rate,while the financial leverage of enterprises has a relatively small impact on the issuance interest rate of bonds.The research results also indicate that the "green" attribute of green bonds can reduce the issuance interest rate of bonds,Green bonds that have undergone third-party certification have significant cost advantages.Through the option adjusted spread method based on Monte Carlo,this article constructs a valuation model for green bonds.Through Matlab software analysis,it is found that the issuance price of green bonds in China is somewhat undervalued,but to a lesser extent.Based on the empirical results,this article provides corresponding suggestions for the future development of green bonds in China from four perspectives: government support,information disclosure,third-party certification,and investor cultivation.