Tianwei Group Bond Default Case Analysis

China’s bond market development initial period,because of the special economic system,the bond market is given priority to with Treasury bonds issued.With the development of market economy,and bond issuance of subject increasingly diverse,in the rapidly expanding scale.Bond characteristic of the financial leverage to make enterprises more and more favor this kind of financing way.As of December 31,2016,China’s bond market balance has reached 43.7 trillion yuan,the inter-bank bond market accounted for more than 90%.At the same time of the rapid development of the bond market,China’s economic growth is slowing,because our country special mode of system,in the past the debt risk,the government will choose to the palm.Until March 2014 "super JGBS" officially began to default,a bond defaults in our country,more and more enterprises bond a bond defaults.In this case,how to guarantee debt subject qualification of credit,lower bond default risk is more and more important.In this paper,tianwei group to issue bonds financing for many times,but eventually default bankruptcy reorganization case were studied.First of all,the paper analyzes the research background and significance of this paper,reviews the domestic and foreign scholars on bond default risk,financial difficulties,the research status of credit rating;Second,the related concepts and theory were summarized,and the development of China’s bond market are introduced;Again,introduced in this paper,the case company tianwei group and its parent company and the relevant subsidiary,tianwei group are discussed and their changes before and after the equity between parent-subsidiary situation;Then using event study method and financial analysis model of tianwei group company financial status,internal and external tripartite face tianwei bond defaults cause is analyzed,on the basis of combing the relevant inspiration of this case,and puts forward some countermeasures.In this paper,the research concluded that lead to tianwei company bond defaults of the main reasons are:(1)the blind expansion of new energy industry;(2)operating strategic adjustment in a timely manner;(3)internal control does not reach the designated position and the industry overcapacity,the regulatory system is imperfect,the credit rating is not standard.In view of this,the author puts forward some Suggestions on the bond market’s different subject:(1)company: cherish their credit rating,establishing the risk early warning mechanism,strengthen internal control;(2)investors aspects: improve the debt risk identification ability,actively safeguard their rights and interests;(3)the regulatory aspects: perfecting the information disclosure system,improve the level of credit rating,perfect the system of judicial treatment bond investors.