Research On Legal Issues Of Resolving Corporate Bond Default Risk

In 2012-2017,the issuance scale of corporate credit bonds in China was 3.6 trillion yuan,3.7 trillion yuan,5.2 trillion yuan,7 trillion yuan,8.2 trillion yuan,and 5.64 trillion yuan.It can be seen from these data that the scale of corporate bond issuance in China is growing rapidly,although it has declined in 2017 under the national tightening monetary policy.As corporate bond issuance and issuance increases,the risk of bond repayments is also rising.The asymmetry of information,the fragility of credit and the volatility of confidence in corporate bonds have led to the continuous growth,accumulation and amplification of risks in the financial industry.In 2018,there were 123 corporate bonds in China's bond market that defaulted and defaulted to 119.851 billion yuan.The number and amount of defaults increased by more than 2.5 times.How to effectively prevent and deal with these risks has become the top priority of China's bond market legal system.Starting from the goal of prevention and resolution of corporate bond default risk,the corporate bond default risk should be resolved from the two aspects of corporate bond default risk prevention system and corporate bond default disposal system.The corporate bond default risk prevention system is in the stage of the issuance of corporate bonds and the successful issuance of corporate bonds.The rights and obligations of bond issuers,bondholders and third-party institutions are properly arranged through the legal system,thus preventing bond defaults.The purpose of the risk.The corporate bond default risk prevention system mainly includes the issuance mechanism,information disclosure system,credit rating system,bondholder meeting system and bond trustee system.The corporate bond default disposal system is a general term for the way in which disputes arising from the default of corporate bonds between bondholders and debt issuers are handled.The corporate bond default disposal system mainly includes settlement,bankruptcy reorganization and liquidation,and default claims litigation.In China's corporate bond default risk mitigation system,there are problems such as imperfect information disclosure system,lack of information disclosure system for corporate creditor's rights,unreliable rating results,rigid government payment,and insufficient protection of bondholders' rights and interests.Drawing on the experience of the United States,China should improve the corporate bond default risk mitigation system in the following aspects.First,improve the corporate bond default risk prevention system,including a sound information disclosure system,clear the responsibility of rating agencies,improve the bondholders' meeting system and improve the bond trustee system.Second,improve the corporate bond default disposal system,and default on corporate bonds.Disposal transition from partial administration to marketization,establish a bond default insurance claim system,and broaden the channels for investor rights protection in the existing default governance methods—the out-of-court restructuring process and the group litigation model of investor rights protection.