The Research Of Credit Bond Default In China

Bonds are one of the most important financial instruments to raise a large amount of funds for the economic construction of our country.In recent years,China's bond market has developed rapidly.By the end of 2017,the scale has reached 74 trillion and 660 billion yuan,which is the third largest bond market in the world after the US and Japan.With the continuous development of the bond market,the risk of breach of contract has also accumulated.Since the "11 Chaori bond" opened the first place of the credit default in China in 2014,the credit default market in China has experienced frequent defaults,and the number of bond defaults has totaled 131 times between 2014 and 2017,and the total amount of default is 92 billion 420 million yuan.For a long time,China's bond market has maintained a record of "zero default".Since the rigid payment is broken,the number of bond defaults has increased rapidly,and has gradually evolved into normalization under the new economic situation.In the event of bond defaults from 2014 to 2017,each issuer and every bond have their own characteristics.But seeing the reasons behind it.We find that there are similarities in the event of default.From the view of industry prosperity,the industry boom is high,and the development of enterprises is good,and the risk of default is relatively small.The impact of the industry boom include internal and external factors,macroeconomic fluctuation,economic cycle,upstream and downstream industry chain supply and demand changes in the external factors;the internal factors are the product demand,industry production capacity,technical level and change of industrial policy changes.If there are drawbacks in the company's own governance,even if the whole industry does not show signs of downlink,the enterprise may also have credit risk.On the one hand,governance will make the enterprise development strategy of leading enterprises inconstant in policy,not the normal operation.The other is the governance structure of chaos will affect the company's reputation,so that investors including banks prohibitive,resulting in difficulties in financing the company 'liquidity risk,and debt default.From the view of the special terms of the bond,the different terms and conditions have different effects on the risk of breach of contract.Some provisions are good for the protection of bond investors,but for the issuers,the triggering of clauses may lead to bond prepayment,resulting in liquidity risk and credit default.Based on the common reasons for the above credit default,this paper puts forward measures to prevent default risk from five perspectives,including industry,regulators,issuers,investors and intermediaries,so as to promote the healthy development of the bond market.