The Impact of the Opening of China’s National Carbon Emissions Trading Market on the Stock Performance of Listed Companies in the Power Industry

The opening of China's carbon market on July 16, 2021 is a major event in China's green finance sector, and the purpose of this thesis is to examine the impact of this event on the stock performance of listed companies in China's power sector. This thesis uses several methods such as CAR and DID to conduct the study, and uses Parallel trend hypothesis test and Placebo test for robustness analysis. The empirical results show that the Chinese carbon emission trading market has a negative impact on the stock returns of companies. After the establishment of China's carbon trading market, the carbon premium of automobiles is positive, while the carbon risk coefficient is significantly negative. The empirical results support hypothesis 2, that there is a positive relationship between the number of carbon allowances traded and the stock performance of the company