Research On The Market Debt To Equity Swap Model Of Steel Listed Enterprises

In recent years,China’s economic growth has slowed down in the process of entering a new normal economy.Under the background of increasing downward pressure,China has begun to implement the supply-side reform of "three reductions,one removal and one replenishment",and intensified efforts to clean up excess capacity.As a key industry with excess capacity,iron and steel industry has fallen into liquidity crisis one after another,and is facing the dilemma of how to deal with the industry’s overall loss and default debt.In this case,the state attaches great importance to the supply-side reform,but also hopes to restart the debt-to-equity swap program to alleviate the current plight.Among them,Nangang Co.,Ltd.,one of the iron and steel enterprises,has also carried out market-oriented Debt-to-Equity Swap under the pressure of huge liabilities.The model adopted by Nangang Co.,Ltd.is representative and reproducible.An analysis of this case can not only explore the characteristics of market-oriented debt-to-equity swap,but also provide a reference for other listed iron and steel enterprises and enterprises that extend to traditional industries.Righteousness.From the perspective of the development background of the iron and steel industry,starting from the study of the advantages and disadvantages of the debt-to-equity swap mode of Nangang,this paper,by consulting literature and comparative analysis,analyses the background of the debt-to-equity swap mode of Nangang,and the advantages and possible problems of each stage(early,medium and late)in this mode,and then offer a proposal for the debt-to-equity swap mode of other iron and steel enterprises.On the other hand,according to the financial data of the enterprise,with the help of DuPont analysis system and radar chart,the paper further analyses the influence of debt-to-equity swap on Nangang’s shares from three aspects: the operation status,the core competitiveness of the enterprise and the effect of social benefits,so as to judge the validity of the model for the enterprise.The final conclusions of this paper are as follows: Firstly,After the implementation of debt-to-equity swap in Nangang,the company’s asset-liability ratio has been greatly reduced,the solvency has been optimized,and the profitability and growth have been greatly improved,which has enhanced the comprehensive competitiveness of the enterprise.Secondly,this model has the characteristics of marketization.While effectively utilizing social resources,it also promotes the integration of high-quality resources and improves the trust of investors.The linkage between operating performance and equity also guarantees the interests of investors and enterprises,paves the way for the new layout of enterprises,and plays a positive role in the future development of companies.Therefore,in policy,we should actively carry out various supporting measures,debt-to-equity swap with the continuous promotion of supply-side reform,promote the upgrading of iron and steel industry structure,and strive to achieve the ultimate goal of transformation from a big steel country to a powerful steel country.