Risk Analysis Of Ningbo Bird's Entrusted Loans

Under the background that the financial system is still underdeveloped,the debt financing mechanisms such as credit bonds are regulated by the government,most private enterprises are looking for money,the phenomenon of financing difficulties and financing expensive for SME has become more and more prominent.A new financing channel-entrusted loans “has taken advantage of the trend.”According to the China Monetary Policy Implementation Report for the fourth quarter of 2018,as of the end of 2018,the size of entrusted loans in China was 12.36 trillion yuan,accounting for 6.16% of the social financing scale of 200.75 trillion.And entrusted loans has only 17.5 billion yuan in 2002,it can be seen that the entrusted loans has developed rapidly.With the development of entrusted loans,the risks associated with high-interest entrusted loans have gradually emerged.Most enterprises do not focus on their main business,which should cause us to think.The Ningbo Bird company researched in this paper is a typical listed company.The borrowers are almost all real estate industry.By manually collecting the data of the company's entrusted loans,it is found that the current entrusted loans amount has reached 900 million yuan,the annual interest rate fluctuates between 14% and 18%.And the loans are still extended and overdue in the case of guarantee.There are still 5 cases of extension and overdue,and 2 of them have not recovered all the principal and interest through the litigation.The paper uses information asymmetry theory,credit rationing theory,financing guarantee theory,superior order financing theory,management short-sight theory,etc.,using literature review method to introduce financial repression and credit mismatch,motivation and possible risks of entrusted loans,using events research method looks at the market reaction,then analyzes the Ningbo Bird company's basic situation,market reaction,source of funds,motivation and risk of the entrusted loans,put forward some risk prevention and control measures according to the risk of the entrusted loans of Ningbo Bird company,and the risk of bird's company reflects the problems of the entrusted loans of other listed companies,and proposed a series of countermeasures.Then a series of suggestions were put forward for the supervision and management of listed companies,the China Securities Regulatory Commission and the China Banking Regulatory Commission,as well as the financing channels for SME.Finally,we conclude that financial repression will lead to credit mismatch,so entrusted loans will develop rapidly,and high-interest entrusted loans will be accompanied by risks such as vacancy of main business and transfer of interests;It is found that the CAR was negative after the announcement of the entrusted loans,and entrusted loans brought negative effects to the company.The source of funds is mainly the company's own funds and a small part of the bank's borrowing.The high-interest entrusted loans issued by Ningbo Bird company are mainly for obtaining short-term gains,which led to the company's deviation from the main business,and the actual business was hollowed out.It is not conducive to the long-term development of the company.The following suggestions were made for Ningbo Bird company's risk of entrusted loans : development the main business,establishment of a sound risk assessment system,a system of accountability and strengthening of post-supervision supervision.Solving the problem of entrusted loans of listed companies also proposed the following countermeasures: strengthening the CBRC's review of the lending business of listed companies,strengthening the supervision of the CBRC banks,strengthening the supervision of the CSRC on listed companies,and expanding the financing channels for SME.The research in this article has sounded the alarm for companies engaged in high-interest entrusted loans.For other listed companies,this article has important reference value.