Research On Causes And Countermeasures Of Bond Default Of State-owned Enterprises

With the continuous development of China’s bond market,the types of bonds are continually updated,and the scale of bond issuance is increasing year by year.At the same time,credit risk is gradually revealed.Especially since 2019,the successive default of high-rated state-owned enterprises has completely reshaped investors’ beliefs in state-owned enterprises,seriously damaged the credibility of state-owned enterprises,brought difficulties to the financing of other similar enterprises,and hindered the development of the bond market.It also exposes the shortcomings of the current credit bond market supervision.Previous studies are mainly based on the overall default risk of the bond market,and the causes are mainly empirical,aiming at studying the correlation between financial indicators and default risk,less based on specific cases.This paper takes Yongmei Group’s bond default as a case study,through the analysis of Yongmei Group’s operation and financial situation before the bond default,combs the whole process of the default event,and explores the reasons for Yongmei’s bond default from the macroeconomic and policy level,the company level,the bond market supervision level and the credit rating level.It also puts forward applicable suggestions for companies,bond market regulators and credit rating agencies respectively.Through the above research,this paper draws the following conclusions: First of all,the recent macroeconomic downturn,deliberating and capacity reduction policies and environmental policies have adversely affected the company’s financing and profitability.At the level of corporate governance,the erosion of profits by non-coal business,the concentration of debt-building and payment pressure,the huge amount of funds occupied by related parties,and the failure of parent company and government to seek help lead to the exhaustion of Yongmei Group’s funds.The root causes of insolvency.At the same time,China’s bond market regulatory system is not perfect,the rating framework is not perfect and the rating is too high to lead the issuance,which is also an important reason for the default.Finally,this paper makes some suggestions according to the above reasons.First of all,the company itself should build a divestiture of loss business to prevent cyclical risks.Reasonable arrangement of debt structure;strengthening independence,prevent the funds from being occupied by the related parties;Finally,we should get rid of the mentality of rigid payment and improve our hematopoietic capacity.For the supervisory authorities,we should unify the regulatory system,strengthen the coordination of various departments,and improve the existing information disclosure system.In terms of credit rating,we should optimize the rating payment model,break the belief of state-owned enterprises,and improve the existing rating framework.Taking Yongmei bond default as a case study to study China’s bond default,it has a certain typicality,which is helpful to explore the deep-seated reasons for the normalization of current bond default from a micro perspective,to provide suggestions for the rational operation of enterprises,to provide ideas for bond market supervision,to provide reference for the development of rating system,and to identify the default risk of state-owned enterprises for investors.And help establish a good bond market mechanism to maintain the order of the financial market.