A Case Study Of Dongbei Special Steel Bond Defaults

With China's economic development into the "new normal",in the context of economic growth shift and industrial restructuring,more and more downward pressure on the economy.Economic risks and financial risks are hard to cover in the context of economic prosperity.After the debt expansion of the debt volume will also push the debt risk pushed to the cusp.Especially in industries of overcapacity,credit risk is more worthy of attention.Since 2016,there have been many cases of bond defaults in China's bond market.The credit risk of bonds has been gradually enlarged and the "new normal" of the bond market has emerged.This has influenced not only the legal rights of the debtor and also the stability of the bond market.The fundamental reason for the default of bonds,how to deal with bond default,maintain the stable development of the bond market,which need us continue to sum up,continue to explore.In this article,we use bond default of Dongbei Special Steel Group as an example,we analyzes the causes and consequences of the defaults,and finally draws the corresponding enlightenment.This case contains common problem of most overcapacity and state-owned enterprises when dealing with default,while the Dongbei Special Steel itself has a place worthy of our study.Secondly,Combining with the background of the industry and reasons for the issuance of bonds,focus on the business from their own point of view,including the company's financial situation,ownership structure,etc.to analyze the cause of the Dongbei Steel's bonds default,while analyze the impact of the Dongbei Steel's default.Finally,on the basis of the reason of Dongbei Steel's default,the paper gets the corresponding inspiration and suggestion,and obtains the certain innovation in the method,proposes the enterprise to choose the reasonable strategic plan,obtains the local state-owned enterprise debt default disposition plan as well as the market supervision aspect inspiration.The article provides some reference for the bond issuers and other bond market participants to promote the development of China's bond market more healthy.