Research On The Default Risk And Countermeasures Of Yongtai Energy Debt

Bond market is the place to issue and buy bonds,an important part of financial market,and an important foundation of national financial market.Since its establishment in the 1990 s,China’s bond market has developed into the third largest bond market in the world.In the process of rapid development of bond market,the risk of bond default is gradually exposed.Before 2014,China’s bond market did not have the phenomenon of non payment of funds due,and the implicit guarantee of the government had been there until March 2014,when the "11 super day bond" had a substantial default,which was the first corporate bond default event in China,ending the history of all rigid payment of bonds in the past,and since then,China’s bond default events have continued.Since 2018,China’s bond market has frequently "stepped on thunder".By 2019,the credit risk of China’s bond market has entered a year of centralized release.According to the statistics of wind database,as of December 31,2019,there were only 185 defaults on credit bonds in 2019,with a default amount of 110.168 billion yuan,all of which have reached a new high over the years.Private enterprises and listed companies are two key words of bond default market.From the data,from 2014 to 2019,there were 178 defaulting entities with a total amount of RMB 282.3 billion,including 135 private enterprises with a total amount of RMB 195.4 billion.The defaulting entities and defaulting amounts of private enterprises accounted for 75% and 70% respectively.Yongtai Energy Co.,Ltd.(hereinafter referred to as Yongtai energy)is a typical representative of these private enterprises.Now,it seems that the default of bond market is developing towards normalization.In the long run,breaking the rigid bond exchange is also the only way for bond development,and more bonds will break the rigid bond exchange in the future.How to further improve the development of bond market on the premise of risk early warning and control and effective supervision of bond market may also be a problem worthy of consideration.The issuer,Yongtai energy,is a private enterprise,and the company’s first default bond is "17 Yongtai energy cp004".On July 5,2018,the issuer materially defaulted on its principal and interest.As of December 31,2019,a number of bonds have defaulted,with a default amount of up to 10 billion.This paper takes Yongtai energybond default as a case study,and discusses the problem of bond default with the theoretical achievements and research contributions of relevant scholars and experts.First of all,this paper elaborates the default process of Yongtai energy bond in chronological order.First of all,this paper elaborates the default process of Yongtai energy bond in chronological order.Secondly,from the internal and external factors of the enterprise,this paper studies and analyzes the causes of the default of Yongtai energy bond and the consequences after the default,and analyzes the self rescue measures of Yongtai energy after the default of the bond,so as to draw some enlightenment and give some suggestions to prevent the risk of debt violation.It is hoped that the research in this paper can bring substantial help to the private enterprises in the management,strategic layout and prevention of debt default risk,and provide reference for promoting the healthy development of China’s bond market,improving the overall risk awareness of the bond market,and improving the bond market system.