Case Study Of KDX Corporate Bond Default Based On Liquidity Risk Case Study Of KDX Corporate Bond Default Based On Liquidity Risk

After more than 30 years of development and improvement in my country’s bond market,my country’s bond market has been enriched and improved in terms of transaction varieties,transaction scale and market transaction liquidity,but bond defaults have also occurred frequently.While my country’s bond market is booming,defaults in the credit bond market are also deteriorating.According to WIND data,the amount and number of defaults in my country’s credit market have increased significantly during 2018 and 2019.In 2018,the default amount exceeded 10 million.100 million yuan,the number of defaults exceeded 100.From the perspective of the default industries of credit bonds,as of the end of 2019,the manufacturing industry was the industry with the largest number of default subjects,default amounts,and defaults.This article takes KANGDEXIN COMPOSITE MATERIAL GROUP(KDX),which announced its bond default in January 2019,as a case.Through in-depth analysis of the reasons for the default,the corresponding enlightenment and suggestions are obtained.First of all,this article sorts out the domestic and foreign research status of corporate liquidity and corporate bond defaults,and lays a solid theoretical foundation for follow-up research.Secondly,this article uses static asset liquidity indicators and dynamic asset liquidity indicators to analyze KDX’s asset liquidity and finds that KDX’s asset liquidity risk is mainly manifested in insufficient static asset liquidity and dynamic asset liquidity.Continue to be zero;debt liquidity risk is mainly manifested in the high cost of debt financing and the decline in financing capacity.Immediately,this article clarifies the mechanism of liquidity risk that affects financial indicators through financial indicators and Z-value model analysis,and aggravates the financial crisis that leads to 18SCP001 bond defaults.Third,this article further explores the causes of asset and liability liquidity risks,and finds that the decline in industry prosperity index,a large number of restrictions on other liquid assets,excessive external guarantees,excessive guarantee risks,maturity mismatches,and failure to diversify development Under the common influence of the new company,KDX’s liquidity risk has become more prominent.Finally,based on the above analysis and conclusions,recommendations for companies in the same industry and related companies to prevent capital occupation by major shareholders,rationally arrange internal debt structures,strengthen their own profitability management,formulate suitable development strategies,and improve liquidity risk control.The innovations of this article are mainly reflected in the following two aspects.First,from a research perspective,the previous literature on liquidity risk research mostly focused on financial institutions such as commercial banks,and few scholars conducted liquidity risk research on enterprises.Second,from a research perspective,most corporate bond default indicators are financial analysis based on financial indicators such as corporate operating capacity and profitability.Few liquidity risks are conducted from the perspective of corporate asset liquidity and liability liquidity.Analysis,and the indicators of asset liquidity are different from traditional static asset indicators,and dynamic asset liquidity risk indicators and potential asset liquidity risk indicators are also added,which can more comprehensively reflect the company’s asset liquidity risk situation.