| In 2014,the first credit bond "11 Chaori Corporate Bond" substantially breached the contract,breaking the rigid payment of China’s bond market.By the end of 2019,there were more than 180 defaulting entities,of which private enterprises accounted for 70% of defaults.Over the past six years,there has been a clear phase characteristic of defaults in China’s bond market.In 2014,there were only a few defaults,mostly due to a decline in profitability.From 2015 to 2016,China’s credit environment was relaxed,but defaults began to increase,mainly due to the decline in the industry cycle leading to a decline in the profitability of private enterprises.The "three go,one drop and one supplement" macro-control proposed at the end of 2015 brought about a drop in downstream demand.The supply in the middle and upstream areas still far exceeded the demand,and the decline in product prices led to the continuous shrinkage of the profit cash flow of downstream enterprises.Credits for industries with overcapacity,such as glass,coal,steel,cement,and nonferrous metals,continue to tighten.These strong-cycle industries are high-risk areas for default risks.In 2017,some high-risk defaulters were cleared in the first two years.The corporate bonds that relaxed the bond issuance conditions two years ago have not yet matured,so there are fewer new defaulters.In 2018-2019,the Sino-US trade war started,economic deleveraging,strict government debt control,strict financial supervision,non-standard financing contraction,stock index fell in 2018,equity pledges showed a burst of positions,and bonds issued two or three years ago Centralized maturity leads to centralized defaults,exposure to financial fraud,and so on,resulting in a sharp rise in credit defaults,especially the explosive growth of credit defaults for private listed companies,which have always had good corporate qualifications.Under the background of the normalization of bond defaults,the single-party credit storm is obvious,and it is very meaningful and valuable to tap the commonality of default of private listed companies."16 Tianguang 01" is one of the bonds that defaulted in October 2019.The main reason for the default is not external factors such as industry,but internal factors.It has almost all the common problems of private enterprises.Analyzing the reasons for default is representative.This article takes Tianguang Zhongmao as the research object,first introduces the basic situation of Tianguang Zhongmao,reviews the history of default events,and secondly analyzes the deep-seated causes of its credit default from the four levels of external environment,corporate governance,capital operation,operation and financial status.Analyze the default factors such as the deterioration of its operating cash flow,irregular internal governance,inadequate information disclosure,illegal guarantees and occupation of funds,unreasonable business model,and aggressive investment decisions,and finally get the inspiration and conclusions of how the company operates steadily.It is hoped that through in-depth exploration of Tianguang Zhongmao’s bond defaults,it will serve as a reference for the research of reducing the default risk of financing companies,increasing operating and financial stability,and preventing the credit risk of private listed companies.Through the analysis of Tianguang Zhongmao’s bond default cases,the following three enlightenments were drawn:(1)power must be balanced and firm corporate governance;(2)investment must be within strength and the main business should be solid;(3)financial risk prevention should be strengthened Do a good job in cash flow management.At the same time,four conclusions should be drawn:(1)Tianguang Zhongmao’s credit default can be pre-judgment;(2)perfect corporate governance can restrain the management’s risk-taking behavior;(3)radical capital operation damages business performance;(4)Enterprises with insufficient cash flow are prone to credit default. |
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