| The development of my country’s bond market is changing with each passing day with the development of my country’s economy,and issuing bonds has gradually become an essential channel for corporate financing.But it cannot be ignored that the growth of the bond market has also produced many problems.In 2014,the "11 Super Bond" had a substantial default,which was the first bond default event in China,which opened the prelude to my country’s bond default.Since then,bond default events have emerged one after another.2019 was the most severe year for corporate bond defaults in my country.By the end of 2019,a total of 481 bonds of 159 companies had defaulted,with a total default amount of 261.969 billion yuan.According to the nature of enterprises,the 159 defaulting entities are classified and found that private enterprises are the hardest-hit areas for bond defaults.Kangdexin is a private enterprise established in August 2001,and it is also an industry leader in the optical film segment.Kangdexin’s net profit had grown by leaps and bounds,from less than 100 million yuan when it was listed in 2010 to 2.5 billion yuan in 2017,and its stock price has risen nearly 20 times.However,it is such a "star company" that has a bond default event that shocked the bond market.The reasons for this are worth investigating.This paper mainly adopts the method of combining literature research and case analysis.After collecting much domestic and foreign literature and materials related to bond defaults,this paper compares and sorts out the causes of bond defaults discussed in the literature and their preventive countermeasures.Then,based on the specific case of Kangdexin,it analyzes the causes of its bond default from the macro level,industry level,company level and related institution level,and puts forward preventive countermeasures.Through the analysis of KDX’s new bond default cases,we can find that: First,from a macro perspective,my country’s economy has entered a new normal,the macroeconomic downturn,and financial policy adjustments have led to the tightening of financing channels for private enterprises and weak consumer demand,weakening the industry.Profitable space weakens KDX’s core capabilities.Second,from an industry perspective,in the composite materials industry where Kangdexin is located,domestic and international competition has become increasingly fierce,and corporate income has fallen sharply;simultaneously,due to aggressive expansion,the company has severe overcapacity.Third,from the company’s perspective,it is mainly due to internal reasons such as the embezzlement of funds by major shareholders,the tight cash flow caused by aggressive expansion,the unscientific decisionmaking of bond issuance,and the unreasonable internal governance structure.Fourth,from the institutional level,the credit rating tracking is relatively lagging behind,and the rating results are not objective enough;Ruihua’s audit quality is not up to standard,and it fails to truthfully disclose KDX’s capital situation,which misleads investors’ investment decisions.In this regard,this paper draws the following inspirations: For relevant institutions,regulators should improve the information disclosure system,implement unified supervision,and increase the cost of bond default;rating agencies should improve system design and improve the quality of credit ratings;audit institutions should audit objectively and improve the quality of credit ratings.For bond issuers,they should be keenly aware of changes in the external environment,make scientific strategic adjustments in a timely manner,improve the corporate governance structure,make rational decisions,and avoid radical expansion.For investors,they should improve their financial literacy,avoid blind obedience,and invest rationally. |
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