The Case Study On Marketed Debt-to-Equity Swap Of Yunnan Tin Industry

In recent years,China's economic development has entered a new normal and the domestic supply structure has become unbalanced.The company's asset-liability ratio has been excessively high,and its operational efficiency has been insufficient.The risk of commercial banks' non-performing loans has increased.Debt-to-equity swaps are a mode of debt restructuring.In order to reduce corporate leverage and improve the quality of bank assets,they will be restarted in China 17 years later.Different from the previous round of policy debt conversion,the current round of debt-to-equity swaps has been market-oriented in accordance with the principle of market economy,that is,market-based debt-to-equity swaps.As one of the components of China's supply-side reform,market-oriented debt-to-equity swaps are mainly aimed at high-quality companies that face temporary difficulties but have great potential.The implementation of market-oriented debt-to-equity swaps can reduce the leverage of high-quality enterprises while accelerating the bad banks.Disposal of assets.With the gradual advancement of the market-related debt-to-equity swap policy in China,it is of great practical significance for companies to implement market-based debt-equity swaps.As the first local state-owned enterprise to implement market-oriented debt conversion,Yunnan Tin Industry has a certain degree of representation.This article starts with a case study of Yunnan Tin's market-oriented debt-to-equity swap.It first introduces the basic situation of Yunnan Tin Industry,the profile of the debt-to-equity conversion project signed by the Construction Bank and the operating conditions for debt-to-equity swaps,and then the Yunnan Tin Industry Market.The motivations,operation modes,and core issues in the operation process(pricing strategies,exit methods,risks in the implementation process,and responses)of the debt-for-equity swap were analyzed,and finally the market response,capital structure,solvency,and operating conditions were analyzed.From a variety of perspectives,the short-term effects of the implementation of marketized debt-to-equity swaps in Yunnan Tin were evaluated.Among them,the design of the operation model of market-oriented debt-to-equity swapping in Yunnan Tin has a certain demonstration effect on the implementation of a new round of debt-to-equity swaps.The design features of its operating model include: Banks,flexible application of fund models,investment in quality assets,and The fund market is raised and the withdrawal method is flexible,and risk management is strengthened.Through research on the market-oriented debt-to-equity swap of Yunnan Tin Industry Co.,Ltd.,it can be known that the implementation of market-oriented debt-to-equity swaps has received keen attention from investors in the securities market.Funds raised through the establishment of fund models are used to repay high-interest liabilities and investment quality respectively.The company and mineral resources fully meet the development needs of the company.In the short term,the implementation of the debt-for-equity swap has improved corporate solvency and profitability,improved the capital structure of the company,and consolidated its core competitiveness.Its successful experience has certain reference value.The market-oriented debt-to-equity swap is also facing many challenges.It also requires the concerted efforts of all sectors of society to further improve the market-oriented debt-to-equity pricing strategy,equity exit methods,funding supervision channels,and investment restraint mechanisms.