Research On The Causes And Preventive Countermeasures Of Environmental Protection Private Listed Company Bond Default

After 2014,with the economic growth rate slowing down,China’s economic growth has entered the New Normal and gradually changed from high speed to medium-high speed.The economic development structure began to upgrade from extensive to inclusive.With the change of economic form,China’s economic development is facing a downward trend.Under this pressure,the credit risks of the bond market begin to emerge,and bond defaults occur from time to time.At present,the environmental protection industry,which is in the sunrise industry,is also affected.So far in 2018,four private listed environmental companies have defaulted,the number and amount of their bond defaults have attracted the attention of the industry.Based on the above background,this paper adopts the case study method,taking the bond default of Kaidi Eco "H6 Kaidi 03" as an example,to discuss the default risk of environmental protection enterprise bonds.Firstly,This paper makes a descriptive analysis of four private listed companies with environmental protection type that have default on bonds,and summarizes that environmental private listed companies are affected by the economic downturn,industry competition,increased debt ratio and strategic radicalization,aim to prepare for analysis the default reasons of "H6 Kaidi 03".Secondly,this paper analyzes the default risk of "H6 Kaidi 03" from macro environment,industry environment,corporate governance and finance.Finally,according to the problems existing in the corporate governance and strategy of Kaidi ecology,this paper mainly proposes specific measures to improve the prevention level of environmental protection enterprise bond default risk from four aspects: enterprise risk management level,corporate strategic decision,information disclosure system,and enterprise financial management level.The conclusions of this paper are as follows: first,the macroeconomic recession and its main business overly reliant on national policies are the important reasons for the default of Kaidi Eco;Second,the environmental protection industry is facing severe competition in recent years.Due to the shortage of raw materials and long project cycle,environmental protection enterprises are exposed to operational pressure,which is also one of the reasons for bond default of Kaidi ecology.Thirdly,unreasonable asset structure,weak solvency,low profitability and shortage of cash flow are the most direct internal reasons for bond default.