Research On The Default Of Credit Bonds Of Wintime Energy Co.,LTD.

As credit bonds become more and more important in China’s financial market,the stability of the credit bond market is related to the stability of the financial market,economic stability,and social stability.The default of credit bonds is related to the stability of the credit bond market.Therefore,it is of profound significance to study the issue of credit default.The paper uses the literature review method,case study method,comprehensive analysis method to study the default of credit debt in China.The content of the paper is divided into six parts.The first part is the introduction.The second part introduces the status quo of China’s credit bonds in 2018,including the status quo of issuance,the status quo of the transaction,the status quo of default,and the way in which credit bonds are disposed of.The issuance market has the characteristics of large circulation,variety,regionality and industry.The breach of contract presents the characteristics of high default,involving a wide range of industries,increased number of listed companies,and special clauses to speed up the process of default.There are two main types of credit bond default disposal methods: litigation methods and non-litigation methods.At present,credit defaults are mainly handled by litigation.The third part is the introduction of Wintime Energy credit debt default case,which is divided into the introduction of default principals,the introduction of default debts,the introduction of breach of contract history,and the introduction of default disposal methods.The fourth part is the analysis of Wintime Energy Credit Debt default case.From the case,it analyzes the reasons and disposal measures of Wintime Energy Co.,Ltd.The reasons for default are divided into external reasons and internal reasons.External reasons include the national economy,the state’s policies,the impact of downstream industries,and financial market factors.Internal reasons include the company’s business strategy,rapid expansion,debt overburden,intangible assets,high profitability,solvency,and operational capabilities.The disposal measures section explains Wintime Energy’s sale of assets,holding a bondholders’ meeting,seeking help from the government,seeking to restructure and deal with default bonds,and pointing out that Wintime Energy has defaulted on credit bonds due to excessive reliance on government assistance;bonds are suspended after default.Conducive to market circulation;the issue of insufficient protection mechanism for investors’ interests.The fifth part is the countermeasures and suggestions.Thepaper puts forward the following suggestions for the problems existing in Wintime Energy:Enterprises should strengthen their debt repayment confidence and operate cautiously.Policy makers should promote the marketization of default bonds,improve supporting measures,improve the protection system for investors’ interests,promote the pricing process of credit mitigation tools,and promote the internationalization of the bond market.