Fuli Yang, Shiyu Lin
Published 30 October 2026 · Version 1.0 · pp. 30-46
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 49 verified academic and institutional sources, updated through 13 October 2026, 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.
Cite this article
Fuli Yang, Shiyu Lin (2026). From Disclosure to Resilience: Climate-Risk Transmission Frictions in China’s Corporate Bond Market. GARCH, 1(1), 30-46.
Versions and rights
This is the GARCH journal edition. The manuscript retains its original research-version date. Earlier working paper: SSRN 7409338.
Copyright © 2026 Fuli Yang and Shiyu Lin. All rights reserved. Full text is freely available to read and download.