Research On The Default Case Of "15 Northeast Special Steel CP001" And The Enlightenment To Chinese Bond Market

The bond market of US and UK has been developed earlier,then their market mechanism is more perfect,and some default event may occur in the bond market.Before 2014,China's bond market did not appear the phenomenon of non-payment of funds,and the government implicit security phenomenon has been there until the "11 super-debt" breach of contract,this normal was broken.After the private enterprise bonds breach of contract,March 21,2015 Sino-foreign joint ventures Dongfei Mazzoli Textile Machinery Co.,Ltd.issued the "12 East fly 02" debt default.Until March 17,2015,the second largest state-owned enterprises of Liaoning Province issued by the Northeast Special Steel "15 East Special Steel CP001" bond default,breaking the local state-owned enterprises and the main underwriter of the China development bank.As of March 1,2017,a total of 116 bonds is in a material default,involving 55 issuers,indicating that China's bond market credit risk is being released.Whether from the northeast special steel industry in China's steel industry status,or a strong technical capacity,the Northeast Special Steel has a strong brand and market influence,but due to various factors,the Northeast Special Steel as the second largest state-owned enterprises in Liaoning Province occurred in the case of bond default,and it is Chinese first state-owned enterprises default event.In this context,this paper analyses the causes of breach of contract in the Northeast,from the issuer,regulators,investors,and media to come up with recommendations,hoping to improve China's bond market construction,to prevent the bond market risk.The paper reviews the default process,combing the causes of bond defaults of the Northeast Special Steel,and the paper explores the root causes of the breach of contract in many ways.The paper analyzes the case enlightenment on the bond market in our country,according to the analysis of reasons of default,putting forward the proposal from the issuer,rating agencies,regulators,investors and the media to improve the bond market are proposed.Researching on the"15 Northeast Special Steel CP001" bond defaults is of great significance to perfect Chinese bond market.The process of bond market risk releasing is also a more mature process.