From Disclosure to Resilience: Climate-Risk Transmission Frictions in China’s Corporate Bond Market

Abstract

The paper examines why climate-related information does not consistently become a traceable signal in corporate bond prices, contracts, and secondary-market resilience. It defines transmission adequacy as the ability to connect a material exposure to the correct legal obligor, align it with the information date and financial horizon, document its treatment by credit intermediaries, and observe it in financing and stress-state indicators. A structured critical review of 40 verified academic and institutional sources organizes evidence around five links: disclosure, exposure measurement, pricing and contract design, credit intermediation, and market resilience. The synthesis identifies five corresponding frictions—legal-entity and asset-location mismatch, information-date and horizon misalignment, measurement non-comparability, absorption by ratings, guarantees and ownership, and limited price discovery in thinly traded bonds. For China, the article proposes Module 1, an issuer–emitter–bond map; Module 2, bond-relevant climate disclosure; Module 3, transparent intermediary treatment; Module 4, a climate-credit stress dashboard; and Module 5, pre-specified pilots and proportional scaling. These modules target traceability rather than an administratively imposed premium and are paired with burden safeguards, implementation metrics and failure interpretations.

Author abstract from the research manuscript. Typography and line breaks have been normalized; the linked source may show a different manuscript version.