Analysis Of The Financial Impact Of China National Gold Group's Market-oriented Debt-to-equity Swap

After the reform and opening up,in order to pursue economic recovery and rapid development,China has led to unreasonable production capacity structure and serious waste of resources;Coupled with the impact of the international financial crisis and the global economic depression,China began to slow down the rate of economic growth and pay attention to the quality of economic growth.In order to solve the problems of unreasonable capital structure,high leverage ratio,heavy debt service burden and bottleneck of development of Chinese enterprises,the State Council,on the basis of policy debt to equity swap,learned lessons,carried out reform and innovation,proposed a new round of debt to equity swap dominated by the market and independently negotiated by enterprises and implementing institutions,and thoroughly implemented the supply side structural reform.China Gold Group has pioneered and innovated in the market-oriented debt to equity swap project,provided a new mode of equity swap,and achieved success.Therefore,this paper selects China Gold Group as the case study object,mainly combined with the financial ratio of various indicators,using comparative analysis method and radar chart,analyzes and summarizes the financial impact of debt to equity swap,and draws conclusions and enlightenment.Firstly,this paper introduces the research background of debt to equity swap;Then,before the financial impact analysis,it briefly introduces the implementation of market-oriented debt to equity swap of China Gold Group;Then it is the key part of the article,which analyzes the impact of the target enterprise’s capital structure,investment and financing ability,financial performance and financial risk before and after the implementation of debt to equity swap;Finally,according to the content of the analysis,draw conclusions and enlightenment.Market-oriented debt to equity swap plays a certain role in reducing debt financing costs,improving various financial capabilities and internal governance capabilities of enterprises.I hope this paper can enlighten other enterprises.