Core Viewpoint - The People's Bank of China announced eight significant financial opening measures, including the expansion of the carbon reduction support tool, which aims to enhance green finance and support the country's dual carbon goals [1][3]. Group 1: Carbon Reduction Support Tool - The carbon reduction support tool was established in 2021 and targets 21 national financial institutions, focusing on clean energy, energy conservation, and carbon reduction technologies [1]. - The implementation period of the carbon reduction support tool has been extended to the end of 2027, as per the guidelines issued by the Central Committee of the Communist Party of China and the State Council [1]. Group 2: Challenges Faced - There are multiple challenges in the implementation of the carbon reduction support tool, including a lack of unified standards for green project recognition, which complicates verification and measurement of carbon reduction [2]. - The tool's coverage is limited, failing to support key areas needed for achieving carbon peak goals, and financial institutions are cautious in their operations, leading to limited scale [2]. - There is a need for improved risk compensation and incentive mechanisms, as some financial institutions show low enthusiasm for participation [2]. - Regional disparities exist, with the supply capacity of green projects in central and western regions being lower than that in eastern regions [2]. Group 3: Future Prospects - The expansion of the carbon reduction support tool signifies a deepening reform phase for green structural tools, potentially leading to innovations in supported areas, financial products, and accompanying policy mechanisms [3]. - Shanghai's role as a testing ground for these policies reflects a combination of policy testability and institutional leadership, with plans to explore diverse green financial tool designs [3]. - The global landscape of green finance is entering a phase of both competition and cooperation, and through structural monetary policy, China can enhance its climate financial governance capabilities [3].

Core Viewpoint - The research paper explores how carbon reduction support tools under China's "dual carbon" goals can enhance the market value of commercial banks while fulfilling their environmental responsibilities [2][5]. Group 1: Research Framework and Background - The study employs a "signal transmission - reputation accumulation - risk governance" three-dimensional analysis framework to explain how structural monetary policy tools reshape the value creation logic of commercial banks [2][4]. - Green finance is highlighted as a bridge for integrating environmental governance with economic growth, with commercial banks playing a crucial role in green credit practices [2]. Group 2: Impact of Carbon Reduction Support Tools - The introduction of carbon reduction support tools by the People's Bank of China has linked low-interest re-lending funds directly to banks' green loan performance, aiming to guide financial resources towards green low-carbon sectors [2][5]. - The research indicates that these tools effectively enhance banks' market value through three key mechanisms: signal transmission, market reputation, and risk governance [5]. Group 3: Empirical Analysis - The first part of the empirical analysis uses a difference-in-differences model with data from 42 A-share listed commercial banks between 2020 and Q1 2023, finding that carbon reduction loans significantly increase banks' market value [6]. - The second part validates the effectiveness of the three mechanisms: - The signal transmission effect is evidenced by increased stock liquidity due to reduced information asymmetry [7]. - The market reputation effect is shown through increased positive discussions and interactions on social media platforms following banks' participation in carbon reduction loans [7]. - The risk governance effect is demonstrated by improved liquidity and risk resistance in banks that participated in the carbon reduction support tools [7]. Group 4: Policy Implications - The study suggests that carbon reduction loans in energy-saving and clean energy sectors have the most significant impact on enhancing banks' market value, indicating a need for regulatory focus in future policy designs [7]. - It also notes that carbon reduction loans, supported by low-interest central bank funds, have a more pronounced effect on banks' market value compared to regular green loans, recommending an expansion of such tools' application [7].