Study About Default Of Corporate Bonds

In January 2015, China Securities Regulatory Commission issued new regulations on corporate bonds, the new regulations abolished the issuance approval system of corporate bonds, which marks the transition from the approval system to the registration system of China's corporate bonds' issuance system. Under this background, the issuance quantity and the number of total issuance of corporate bonds in the primary market increase rapidly, trading volume of bonds in the secondary market increases rapidly, thus the corporate bonds market ushered in a period of rapid development. At the same time, China's bond default risk continues to rise, suggesting a substantial increase in the number of bond defaults, the number of defaulted bonds in 2015 reached 13, which claimed an increase of 116.67% compared with 2014, and cases of default of corporate bonds have also increased. Therefore, in this context, to strengthen the bonds and corporate bonds default risk and risk management research has its necessity and practical significance.This paper mainly adopts the method of case study, with the default of ST Hunan and Hubei debt for example, to study China's corporate bond default risk. Case analysis part is the main part of this paper, this part first describes the development status of China's bond market, followed by analysis from multiple perspectives of bond default risk characteristics in our country. Next, it explains the specialty of the selected debt default case of ST Hunan, Hubei, and based on this illustrates the in-deep factors of this case and briefly analyzes the impact of this case to themarket. In the case of partial revelation, based on the foregoing analysis, suggestions about risk management on corporate bonds and the healthy development of the bond market are proposed.