The Reasons And Enlightenment Of Default Of Bonds Of Private Enterprises In China

Along with the transformation and upgrading of China's economy into the throes,significant changes in industrial structure and development mode,the bond market risk began to focus,combined with long-term credit debt concentration in 2018 to honour,deterioration of the international economic environment and other factors of overlay,led to the credit debt default in 2018 both quantity and amount for hit a historic peak,among them,especially private enterprises bond defaults,how to build a bond risk prevention system has been widely concerned.In this context,this paper takes "14 FuGuiNiao" as an example to comprehensively analyze the default process and reasons of China's private enterprises' bonds.Firstly,the default characteristics of China's credit debt market are comprehensively analyzed.Secondly,this paper makes an in-depth analysis of the default cases of "14 rich birds",and mainly introduces the reasons for the default of "14 FuGuiNiao" from the external factors and the internal aspects of the company.Internal factors include deviation of corporate strategy,blind expansion,prominent corporate governance problems,concentration of equity,serious decline of relevant financial indicators,violent fluctuation of cash flow,and perennial negative.Finally,through the specific analysis of the reasons for the default of FuGuiNiao bonds,this paper puts forward the inspiration and Suggestions for the construction of the private enterprise bond risk prevention system.First,bond issuers need to avoid blind expansion,strengthen internal management,improve corporate governance mechanism,reasonable control of debt scale,and establish a sound financial risk prevention mechanism.Second,investors need to abandon the "rigid payment" consciousness,improve the default risk tolerance,improve professional investment quality,and build a bond risk identification framework;Third,third-party intermediary institutions need to improve their objective independence,establish an internal firewall system,improve the third-party service institution system,and improve the degree of standardization.Fourthly,regulators need to establish a unified supervision system,clarify the division of rights and responsibilities,and strengthen the information disclosure system.Finally,the bond market needs to build a diversified bond risk release mechanism,improve the investor protection mechanism and improve the bond default market mechanism.