Pandemic Bonds Issued by the Chinese Government Supported Post-Disaster Recovery from COVID-19 Pandemic

Abstract

During the SARS-CoV-2 (COIVD-19) outbreak, China repeatedly stressed that the response to the pandemic required action at all levels of government, including the issuance of Pandemic Bonds to help the country return to work and production. However, studies on the effectiveness of Pandemic Bonds during that period are rare. Starting with China's national financial bond market data after COVID-19 in 2020, this paper focuses on the correlation between the Credit Spreads of the relevant bonds and the corresponding bond market rate of return, based on the Copula model. The empirical analysis is also carried out for multiple dimensional groupings such as enterprises, industries, provinces, and bond maturities. The results show that there is a significant positive correlation between the Credit Spreads of Pandemic Bonds and market returns. In addition, the market correlation is higher for Pandemic Bonds issued in Hubei Province, which is at the center of the 2020 pandemic, and the shorter the maturity of the Pandemic Bond issued, the stronger the relationship with market returns. Finally, this paper provides recommendations for financial regulators and policy makers to consider in their decisions on how to build a more resilient financial system under heavy economic, fiscal, and social pressures.

Internet addiction of university students in the Covid-19 process

“…The research suggests that IA is a common problem across different demographic groups, regardless of gender or level of education. This is consistent with the existing literature, which highlights the global accessibility of digital platforms as a driving force behind the widespread nature of internet addiction [ 2 , 3 ]. For example, the COVID-19 pandemic has had a widespread impact on the level of digital engagement worldwide.…”

“…For example, the COVID-19 pandemic has had a widespread impact on the level of digital engagement worldwide. This has drawn attention to the potential risk of IA regardless of demographic factors [ [1] , [2] ].…”

“…This is characterized by patterns such as uncontrolled internet use and neglect of social life [ 1 ]. The global implementation of containment and quarantine measures to mitigate the spread of COVID-19 [ 2 ] and restrictions across various sectors have had wide-ranging and uncertain impacts [ 3 ]. The pandemic's socio-economic effects have limited young people's physical activity and social interaction spaces, resulting in a heightened affinity and addiction to the internet.…”

How to Sustain Chinese Bond Market Transactions Under the Influence of Covid-19

“…The Chinese anti-pandemic bond is a certain bond issued by the Chinese government to defect financial risk caused by COVID-19. At the same time, the Chinese government's preferential policies for the anti-pandemic bond largely cut down the uncertainty along with the pandemic, reduce the cost of investing in bonds, and even enhance the confidence of the bond buyers in the continuous COVID-19 background [17]. Many positive features along with the anti-pandemic bond are very obvious under the influence of COVID-19.…”

“…Many positive features along with the anti-pandemic bond are very obvious under the influence of COVID-19. Therefore, based on the behavior of anti-pandemic in the last two years, the anti-pandemic bond has earned many Chinese bond investors' preference and then provided cash flow for many anti-pandemic bond issuers since the beginning of the COVID-19 [17]. In summary, the anti-pandemic bond is a useful financial tool to maintain the operation of the Chinese bond market which provides money for the bond issuers [18].…”