Risk Control Analysis Of Debt-to-equity Swaps Under The New Situation

In recent years,under the new situation of " three period superimposed ",the macroeconomic slowing growth and the serious overcapacity problem stands out.The high enterprise debt and bad bank seriouly influence the hidden troubleness of the country's economic transformation and financial stability.On the supply side of reform,under the framework of debt-to-equity,it is on the agenda again.But in the implementation of the policy and there are also a lot of risks in the process of concrete operation,if it not attaches great importance to and strongly prevention and control,debt-for-equity not only cannot achieve the expected effect but also it can become serious disadvantages.Therefore,in a new turn of market debt,under the new situation to study the implementation of the debt risk of the enterprises is great significance.Based on related literature and theory analysis,in this article,the history and current situation of world-wide debt-to-equity swap has firstly been carried on the comprehensive elaboration,and the debt-to-equity swap under the new situation is analysed in the entered,shareholdings,the exist,including policy restriction,macro economic downturn,moral risks,imperfect mechanism of share withdrawal and debt governance and management of the enterprise itself of defects such as risk.Second,taking China Erzhong Group Heavy Industries Co.,Ltd.(abbreviated as Erzhong Heavy Industry)for an example,study on the risk of the process in the debt-to-equity swap under the brand new circunstances.Study suggests that the risks of debt-to-equity swap mainly display in: first,debt equity investment institutions of substantial shareholder's right to make holding enterprise capital takes up stakes in high pressure and funding liquidity risk.Second,the restriction of the development of Chinese local market,the liquidity faces a severe test of the debt-to-equity swap equity.Third,debt equity enterprise facing the slowing of macro economic development growth,enterprise external industry recession risk.At the same time,it also faces its own governance structure is not reasonable,internal risk management efficiency is low.Based on the analysisthe above,this paper argues that: debt-for-equity as a promoting economic development,improving the modern enterprise system,stabilizing the financial market economic policy,need strengthen the bonds convertible at the macro level of market orientation and legalization,consummates our country capital market.And also build institutional moral risk prevention system.At the micro level,the choice of debtr-to-equity swap and equity withdrawal mechanism need be reasonable,and from the source identification and control of enterprise financial risk and management risk,perfecting the corporate governance structure,promote the further establishment of modern enterprise system,so as to reduce the risk of debt-forequity exist under the new situation.