| With the downturn of economy, the process of economic restructuring and corporate leverage, bond defaults have gradually been normalized. The credit risk of the bond market is constantly accumulating and fermenting, and the risk of corporate bond defaults is increasing. From the bond market’s first default bonds’11 Chaori Bond’, despite the warning, but bond default occurs from time to time. Only in 2015, the bond market has seen’12 Zhongfu01 debt’,’15 Shanshui SCP001’,’10 Zhonggang debt’,’12 Shengda debt’,’10 Yingli MTN1’,’11 Tianwei MTN2’bond defaults occurred. Subjects of default bonds spread from the private to the state-owned enterprises, default debt has been involved in corporate bonds, short-term financing bonds, medium-term notes and major varieties in the bond market, default market also has spread from the exchange bond market to the inter-bank bond market. Frequently occurring of bond default events and the broadly covering of default have seriously impacted the healthy and orderly development of bond market.On April 21,2015, BaodingTianwei announced that the company suffered huge losses,business conditions worsen, financing ability lost and cash drain so that it failed to raise capital to pay the 85.5 million yuan interest of’11 Tianwei MTN2’ on schedule. It also declared the default of’11 Tianwei MTN2’.BaodingTianwei as a state-owned enterprise, but also with the central enterprises background, its corporate bonds 11 Tianwei MTN2 default, breaking the myth of the zero default of state-owned corporate bonds. If BaodingTianwei eventually break the rigid payment of state-owned enterprises, then the bond default will be the symbol of the development of China’s bond market. In the event of default, Baoding Tianwei Group’s own cash stream has depleted and has started to filed for bankruptcy on September 19,2015, plus all the related parties’strategic given up, rigid payment in bond market corporate bond is likely to be broken. Rigid payment of state-owned enterprise bond, not only makes the bond market resources flow to state-owned enterprises tilt, the poor quality, higher default risk, state-owned enterprises constantly obtained bond market funds support,but also makes the bond rate of state-owned enterprises become the risk-free interest rate. This phenomenon caused the mismatch of resources, pricing distortions, resulting in the accumulation of the default risk of bond market.This paper selects the first state-owned corporate bonds default events——bond default of’11 Tianwei MTN2’as the breakthrough point. Regulatory level, regulator’s disregarding for the rigid payment of state-owned enterprise makes state-owned enterprises in the bond market easier to obtain financial support. The bond market supervision subject is not unified, making the bond issuer seek the market for the relatively loose supervision for financing, leaving hidden dangers for bond defaults. Bond rating level, through the contrast of default probability calculated by Morton model, subject and debt rating for BaodingTianwei and the long-term bond subject and debt rating standards, I found the existence of the phenomenon of high rating. Since the bond rating result of the third party is an important basis for bond issuance and investors, inflated ratings not only make BaodingTianwei Group more easily to get into the bond market, but also misled the investment behavior of investors. You can think that supervision and the bond rating are the indirect causes of the bond default of BaodingTianwei. Industry level, through the analysis of the situation of supply and demand of the entire PV industry, I found that there is a serious contradiction between supply and demand in the domestic pv industry. Industry overcapacity and oversupply made the industry boom low. As a member of the photovoltaic industry, BaodingTianwei’s living environment has been greatly affected. Enterprise level, by combing of a series of key events, the corporate governance, strategic choice, financing capacity of BaodingTianwei appeared large issues.By the analysis of the company’s financial situation, it is found that the enterprises’ corporate profitability, solvency, cash flow security, capital structure have experienced serious deterioration. This is result in Baoding Tianwei Group bond defaults the direct reason. This is the most direct cause of the bond default of bond default.State-owned economy is the main body of China’s economy and State-owned enterprises play an important role in the state economy. With the economic growth rate down and enterprise leveraging, dealing with bond market corporate bond default risk and reducing incidence of bond market corporate bond defaults are of great significance to the healthy and orderly development of the bond market and domestic economic stabilization. BaodingTianwei group as a representative enterprise of the state-owned enterprises——state-owned enterprises of the background of the central enterprises, the issues reflected in the bond default are very meaningful to other companies. Based on the analysis of the causes of bond default, I put forward the following suggestions to deal with the risk of default, reduce the occurrence of bond defaults and promote the healthy and orderly development of bond market. Regulatory point of view, under the conditions of the overall risk control, orderly breaking the rigid payment, eliminating multiple supervision to straighten out the relationship of supply and demand and to promote the rational and effective allocation of resources in the bond market. Bond rating point of view, through the double rating system, rating blacklist system to improve the reputation cost of rating agencies, to warn rating agencies less rating virtual high phenomenon and to reduce the possibility of the high default risk and state-owned enterprises entering the bond market. Industry point of view, through improving the industry chain, guiding the production and promoting industry upgrading to improve the industry boom and reduce the industry corporate bond default risk. From the perspective of company, by improving corporate governance, and improving the ability of the company’s strategic choice, ultimately to improve the company’s credit status and reduce the possibility of corporate bond defaults. |
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