| On March 4,2014,*ST Super-Day issued an announcement that "11 Super day Debt" could not fully pay the current interest,which means that the first substantial bond default incurred in the Chinese bond market.At the same time,this event also declared that the "Chinese-style" rigid redemption of public debt is officially broken which used to be in ‘zero default’ state.Following the default of 11 super-day debts the number of defaulted bonds increased year by year.The nature of defaulting enterprises has gradually spread from private enterprises to state-owned enterprises and even central enterprises.The credit risk of bonds was continuously enlarged,causing widespread concern.In 2018,due to strict financial supervision,corporate financing was limited which led to the break of the capital chain of many credit bonds and then successively defaulted.Bond default became the “new normal”.The imperfect follow-up mechanism of default has caused the creditor’s legitimate rights and interests to be greatly threatened which has brought great impact to the stability of the entire bond market.How to deal with bond defaults and how to prevent bond default risk requires us to continue to summarize and explore.This paper descriptively counts all corporate credit bond default events from March 2014 to the end of February 2019 and summarizes its characteristics from four perspectives: quantitative development trend,regional distribution,enterprise types and industry distribution.Then it introduces the three common kinds of disposal methods of corporate credit bond default,outlines the disposal of public bond default.The article mainly adopts the case comparison method,based on the Case study of Sinosteel Co,Ltd and Dongbei Special Steel Group Co,Ltd.In this part,this paper firstly analyzed the external reasons for the default of two companies from the perspective of macroeconomics and the status of the steel industry,and also analyzed the internal reasons from the perspective of corporate governance and financial analysis.Then this paper focuses on the different disposal methods of the two companies’ bond defaults,and further clarifies the application and characteristics of the two methods.At the end of the paper,suggestions in relation to the disposal method and risk prevention of bond default will be given,which consider the five aspects: bond market supervision,bond-related system,bond intermediary institutions,bond investors and bond issuers.The purpose of this paper is to enable investors to correctly view the occurrence of default events through the analysis of credit bond defaults and hopes to provide reference value for future default entities to choose the suitable disposal method. |
