Analysis On The Motivation And Performance Of Hua Rong Energy Debt To Equity Swap

With the continuous development of our country's economy,China's enterprise strength has gradually moved from following others to industrial transformation,from backward production capacity to high point manufacturing,and domestic enterprises accelerate the expansion by the opportunity of reform and opening up and market economy.However,the achievements of China's rapid industrial rise seem to be brilliant,but behind it are all kinds of unknown crises and risks.More and more enterprises in order to expand production and promote the development of the pursuit of large and full group line,at the expense of dangerous capital,increase the debt leverage ratio,the development of the enterprise as a gamble.The outcome is of course obvious.The result of blind expansion is that a large number of non-performing loans have been aggregated in major commercial banks,which has seriously affected the order of the financial market.In order to cooperate with the macroeconomic supply side reform,optimize the economic structure,the industrial structure transformation and upgrade,reduce the systemic financial risk and prevent the outbreak of large-scale debt crisis,the government set five major policy points at the end of 2015,in which the key task of "deleveraging" is put forward,and the debt to equity swap is in the last world.The outstanding tools of 90 s were once again proposed as one of the main means of deleveraging.But in 2016,the SASAC issued a letter of opinion,but highlights a huge contrast with the last round of debt to equity swap,the nature and background of the two rounds of debt to equity have been greatly changed.First of all,the role played by the government changes from the leader to the supervisor of the rules,and the release of more rights to the market.The whole process highlights the "four no" principle,which is not compulsory,not involved,not recommended and not to be carried out.All responsibilities return to administrative efficiency,and constantly improve the laws and regulations in the process of transaction,so that debt equity swap can develop in a stable fertile soil,and will not become a denounced "repudiation behavior".This paper selects a listed company,Huarong energy,which is one of the largest private shipyards in China as an analysis sample.As the key construction project in the "11th Five-Year" plan of Jiangsu Province,Huarong energy is one of the 100 private enterprises in Jiangsu Province,which has mature shipbuilding experience and many advanced machinery equipment,which plays an important role in the domestic shipbuilding industry.The shipbuilding industry,as a traditional heavy industrial manufacturing industry,is deeply influenced by the supply side reform,such as coal,energy,infrastructure and other industries.The downward pressure is great,and the debt equity transfer is representative in the private manufacturing enterprises.This article first introduces the background and literature review,mainly from the research background of the article,to explore the significance and ideas of the research.Then it reviews the related theory of debt equity swap,focuses on the basic concept of debt equity swap and the impact of corporate governance,and emphasizes the direction of the research on motivation,lists several main models of debt equity swap,and finally gives several methods for the study of this paper.The case focuses on the situation of Huarong energy company and the details,process and motivation of debt to equity swap.Combined with the current background,we analyze and analyze the patterns and characteristics of Huarong energy debt to equity swap,and derive the fit degree of different enterprises to adapt to the debt to equity swap mode.Through the financial analysis of Hua Rong energy,the data of Hua Rong energy enterprise status,through the comparison and analysis of different indicators,to explore the change of stock prices before and after the debt to equity swap and market sentiment.Finally,through the analysis of the case,we draw the conclusion and inspiration,summarize the role of debt to equity swap in this case and give a conclusion based on performance.Through the problems exposed in the current round of debt to equity swap in the enterprise,the author puts forward the inspiration and countermeasures,providing a reference for the future private enterprises' debt to equity swap.During the period of this paper,the key period of the leveraged task in 13 th Five-Year and the supply side reform of manufacturing industry in China has been emphasized,and the government documents have repeatedly emphasized the prevention of systemic financial risks.The initial stage is also the "2025 China manufacturing" and "The Belt and Road",in this paper the background and policy factors analysis of this case,has a certain time significance.At the same time,although the debt to equity swap is more mature in foreign countries,it is still in the initial stage of exploration,and the use of the scene is gradually open,indicating that the pace of marketization of my debt to stock is steadily advancing.After browsing many foreign cases and developing history,the author points out the present stage in combination with the case and the national conditions of our country.The shortage of government bonds and the improvement methods provide some suggestions for the development of debt to equity swap in China,which has certain practical significance.