A Study On Legal Issues Of Supervision On Default Risk Of Corporate Bond

In China, due to the long-term implicit government guarantee, the real bond default has never arisen before 2014, although there are high risks of default in corporate bond market. However, it was in March 4, 2014, the default of "11 ultra-day debt" broke through the implicit government guarantee of corporate bond, and broke the odd phenomenon of "zero default" in corporate bond market in our country, it was the first case of material breach of corporate bond in our country. The arisen of real breach of corporate bond means the disappearance of implicit government guarantee in corporate bond market in China, and investors would be in face of the high default risks of corporate bond independently. In order to protect the legitimate rights and interests of investors, to response the securities supervision concepts, including streamline administration and delegate power to the lower levels, and simplify access and strengthen supervision, and to prevent and control the default risks of corporate bond, it is necessary to strengthen the supervision of corporate bond default risk. This paper summarized the problems currently existed in the supervision of corporate bond default risk, and finally put forward suggestions of perfecting the supervision of corporate bond default risk in our country, through the studying of mature and effective supervision experiences of corporate bond market in the United States and in Japan. In addition to the introduction and conclusion, this article is divided into the following several parts:The first chapter introduces the supervision of corporate bond default risk from a legal perspective. This part mainly defines the legal concept, connotation and extension of terms relatively involved in this paper, as well as the supervision target, regulatory mechanism and measures of corporate bond default risk, clear and definite the object of this study.The second chapter introduces the present situation of supervision of corporate bond default risk in our country. This part objectively describes the status quo and summarizes the imperfection of supervision legislation system and regulatory system in related to corporate bond default risk in our country:such as the legislative dispersed, disunity of disclosure standards and supervision, incomplete and incomprehensibility of information, irregularity of intermediaries, and insufficiency punishment for illegal disclosure of information disclosure system; Besides, the supervision of credit rating system is not unified, the rating method is not scientific, rating agencies are lack of neutrality and objectivity, and the charging mode is lack of prevention mechanism for conflict of interests and so on.The third chapter mainly introduces the successful experiences of supervision mechanism of corporate bond default risk in the US and in Japan, on the basis of problems analyzed in the second part, sums up the mature experiences of corporate bond default risk supervision in the US and in Japan, and then serves them as references for the improvement of the supervision of corporate bond default risk in our country.The fourth chapter finally puts forward suggestions of improving the supervision of corporate bond default risk in our country. For the problem of imperfect supervision system of corporate bond default risk, this paper proposes to adopt the centralized supervision mode, to improve the corporate bond default risk supervision legislation, and to unify the corporate bond default risk supervision gradually. For the problem of inadequate supervision mechanism of corporate bond market, this paper suggests to improve the information disclosure system, to uniform information disclosure standards, to norm the behavior of intermediaries, to strengthen responsibilities of intermediaries for information disclosure, and to establish penalty system equivalent to responsibility, system of "recidivism" and "surrender" from the learning of experiences of Japan; Strengthen the construction of credit rating system, strengthen the supervision of information rating agencies, improve the credit rating method, establish an effective prevention mechanism for conflict of interests to ensure the neutrality of the credit rating system, and use external credit rating in a rational way, to reduce the reliance and overuse of credit rating.