Case Analysis Of Zhuhaizhongfu Corporate Bond Default

Stocks and bonds are the two major sources of corporate finance.The bond market is the largest capital market,and the developed countries are the most important markets for corporate finance.But in China relative to the stock market development backward,with the development of capital markets,corporate bonds also have a broader market.However,bonds in recent years into the frequent period,as of December 15,2016,a total of 88 bonds occurred default,involving 52 issuers,the scale of 49.694 billion yuan default.And only in 2016 China's bond market a total of 79 bonds a substantial default,involving 34 issuers of the main body,the amount of default of 40.3 billion yuan,an increase of 220%.Bond default peak gradually.In Western developed countries,mature bond market bond default is a very common phenomenon.China's bond market in the past has been the development of the "rigid payment" of the protection,corporate bonds have not occurred a substantial breach of contract,each time there is a tendency to breach of government have come to the government.This kind of bond market by the government of the phenomenon of the market with the reform of China's market is bound to continue.In this paper,Zhuhai Zhongfu Industrial Co.,Ltd.as a case,the issue of "12-rich 01" corporate bonds can not be on the original payment date on May 28,2015 on schedule the principal and interest payments,debt default.In the end,Zhuhai Zhongfu Industrial Co.,Ltd.through a series of measures to complete the full payment,the entire default period of five months.Through the in-depth analysis of Zhuhai Zhongfu corporate bond default events of the cause and effect,found that the direct cause of this bond default is due to maturity when the syndicated loan tightening led to corporate funds strand breaks.Deeper and further business conditions continued to decline,the debt ratio is too high,fixed assets continue to be cash,external financing channels and other reasons.In the third chapter,the author makes a detailed analysis of these problems,including the analysis of market operation status,financial statement analysis,debt structure and deadline analysis,internal analysis of the company.In this paper,according to the problems found in the fourth chapter of the proposed recommendations.Hoping to provide some reference for promoting the healthy development of Chinese corporate bond market,raising the overall risk awareness of enterprises and investors and perfecting the bond market system under the socialist market economy with Chinese characteristics.