| In recent years,China has vigorously developed direct financing,and the capital market financing function has been continuously improved,and the bond market has developed rapidly.At the same time,due to the downward trend of China’s macroeconomic growth and the maturity of the bond market,the credit risk of the bond market has gradually begun to emerge.Since the first bond default in China’s bond market in 2014,the bond market has entered a period of default,and the number and scale of bond defaults have been increasing.In 2018,the number and amount of bond defaults in China reached the highest level in history,and the amount of default exceeded the sum of the default amounts in 2014-2017.At present,China’s credit bond market defaults gradually become normal,and the default entities are diversified.Credit risks gradually spread from private enterprises to local state-owned enterprises and central state-owned enterprises.The industries and regions in which the default entities belong are distributed.Although bond default will become a normal state in the bond market,it will also affect primary and secondary markets,affecting the financing function of enterprises and increasing market volatility.On July 5,2018,WINTIME ENERGY failed to pay its principal and interest of“17 WINTIME ENERGY CP004” issued on time,which constituted a material breach of contract.Affected by factors such as cross-default and cash flow,WINTIME ENERGY has since seen several defaults in which bonds failed to pay their principals and interest on time.This article takes the WINTIME ENERGY bond default event as a case,first introduces the research background and research significance,research content and research methods.Secondly,it introduces the event of default of WINTIME ENERGY bond,including a brief introduction to the company’s basic situation and business operations,as well as the process of issuing default bonds and the process of default of WINTIME ENERGY bond.Thirdly,from the perspective ofexternal reasons and internal reasons,the reasons for the default of WINTIME ENERGY bond were analyzed.The study found that the external causes of the breach of contract include the slowdown of China’s economic growth,the strict social factors of bond regulation,and the industry factors of the downturn in the power,coal and petrochemical trade industries involved in the main business.Internal reasons include:the company’s strategic expansion has been too fast in recent years,which has led to the deterioration of corporate liquidity,large debt,and solvency.At the same time,the company’s profitability has deteriorated.In addition,the company’s financing arrangements are unreasonable,including the unreasonable debt structure,the excessive concentration of debt maturity date and the high proportion of equity pledge.Finally,this paper combines the reasons of WINTIME ENERGY bond default,and puts forward a series of countermeasures for WINTIME ENERGY to cope with this default,such as slowing down the diversified industrial layout,improving profitability,improving financing decision-making mechanism,solving the problem of liquidity shortage,actively promoting strategic restructuring and actively disclosing information.In the future,the scale of bond default may continue to expand.This paper hopes to bring some inspiration to the management of the company to avoid the occurrence of bond default and the response after the occurrence of the bond,which will help to explore the reasons for corporate bond default.I hope to promote the healthy development of the Chinese bond market. |
PDF Full Text Request