Research On State-owned Enterprise Debt-to-equity Swap Under The Background Of Supply-side Reform

At present,the Chinese economy has officially entered a new normal period.Faced with different economic environment,the state and the government have called on all sectors of society to begin supply-side structural reforms.Under this economic background,in order to solve the practical problems such as overcapacity and high leverage that have been existing in China's state-owned enterprises,and to help state-owned enterprises successfully complete their reform tasks,market-oriented debt-to-equity swaps have been proposed as a means and tool to help supply-side reforms.This round of market-oriented debt-to-equity swaps is different from the policy-based debt-to-equity swaps implemented in 1999.It emphasizes that the principles of marketization and rule of law must be followed in implementation.After the start of the market-oriented debt-to-equity swap,state-owned enterprises successively implemented debt-to-equity swaps to solve their own debt problems.As the first large-scale state-owned enterprise in the military state-owned enterprises,China Shipbuilding Industry Corporation's successful experience can provide reference for other state-owned enterprises facing the same predicament.First of all,this paper makes a comparative analysis of the institutional background of debt to equity swap,expounds the relevant theories,and combs the relevant literature.On this basis,it forms a comprehensive and basic cognition of debt to equity swap.Then,in view of the current background of the implementation of debt to equity swap in state-owned enterprises,the motivation of the implementation of debt to equity swap in state-owned enterprises,the operation mode of debt to equity swap in state-owned enterprises and the implementation effect of debt to equity swap in state-owned enterprises are analyzed comprehensively.This paper selects debt to equity swap of China Shipbuilding Industry Corporation as the case study object.In the case analysis part,first introduces the case company and expounds the specific scheme of debt to equity swap,then analyzes the motivation of debt to equity swap of China Shipbuilding Industry Corporation,and studies the implementation path of debt to equity swap and the financial and non-financial effects of debt to equity swap on China Shipbuilding Industry Corporation.The research shows that through the implementation of debt to equity swap,China Shipbuilding Industry Corporation has solved the debt problem and successfully completed the task of "deleveraging".Under the condition of effectively reducing the financial cost,debt to equity swap has a positive effect on improving the profitability and growth ability of the corporation.Through the directional allocation of debt to equity funds,China Shipbuilding Industry Corporation can help the industry to peel off inefficient production capacity and promote its own industrial upgrading.The "two-step" mode of debt to equity swap of China Shipbuilding Industry Corporation is different from the traditional "one-step" mode,which explores a new operation mode of debt to equity swap.This mode not only maintains the control of the target company,but also successfully sets up the exit channel of equity,which provides a new idea for other enterprises to implement debt to equity swap.Finally,based on the content of case analysis,the paper puts forward reasonable suggestions to promote the theoretical research and practical development of debt to equity swap.The research analysis and experience summary of China Shipbuilding Industry Corporation's market-oriented debt to equity swap can provide some references for the state-owned enterprises in trouble.In the process of market-oriented debt to equity swap,we should fully select professional implementing agencies according to the actual situation and needs of enterprises;then,in the process of debt to equity swap,we should maintain the control of the target enterprises;finally,we should pay attention to the issue of equity withdrawal after the completion of debt to equity swap.After research,market-oriented debt to equity swap can help enterprises to deleverage and reduce production capacity in the short term,but enterprises can never forget that scientific governance and effective management are the basis for the healthy development of enterprises..