Analysis Of Causes And Consequences Of Default Of Zhongan Section Bonds

In recent years,China's financial market has developed rapidly.As an important part of the financial market,China's bond market has also grown rapidly,and has become the third largest bond market in the world.But at the same time of rapid development,some bond market risks inevitably emerge.In November 2014,the occurrence of "overday debt" indicates that substantive default can not be ignored.After this incident,other defaults occurred frequently.By the end of 2018,in the credit bond market of our country,the main issuers of bonds,including corporate bonds,directional instruments,medium-term bills,corporate bonds,ultrashort-term financing and other subjects,have all made cases of bond default.Both private enterprises and state-owned enterprises have begun to become the main body of debt default,and the rigid payment which originally existed in all levels of the bond market has been broken one by one.This shows that there are problems among the regulators,rating agencies,local governments,enterprises and other participants in the credit bond market,which leads to problems in the credit bond market in China,and ultimately exposes the credit risk of listed companies.How to avoid the occurrence of bond default by more and more issuers is the most urgent problem to be solved in the bond market.This paper takes the bond default of China Anke Co.,Ltd.as a case study.Firstly,the introduction elaborates the research background,research methods,research contents and significance in detail;secondly,it makes a theoretical analysis of bond default and combs the relevant domestic and foreign literature;secondly,in order to summarize the default characteristics of the credit bond market,it counts the issuance and default of the bond market of our country;secondly,it counts the issuance and issuance of the bonds of Zhongan Ke and the related literature at home and abroad.The process of default has been sorted out.According to macro-economy,external supervision,operating conditions and internal management,case analysis and financial analysis are used to analyze the causes and economic consequences of "15 Zhongan Xiao" bond default.Finally,in order to improve the overall risk awareness level of companies and investors and promote the healthy and stable development of China's bond market,supervision is carried out.Participants at all levels of the credit bond market,such as institutions and government departments,put forward corresponding suggestions.The conclusion of this study is that the direct cause of this bond default is that many accounts receivable fail to recover at the expected time point,which leads to the current liquidity shortage.The deeper reasons are:(1)the deterioration of business conditions;(2)the rapid expansion of investment;(3)frequent related party transactions;(4)the pledge of the actual controlling shareholder's equity;(5)imperfect external supervision and so on.Based on this,some suggestions are put forward to all participants in the bond market:(1)the main body of issuing bonds: improving the management level of the company,strengthening the construction of financial early warning system and strengthening the internal control of the company;(2)the investors: improving the investor protection mechanism,clauses for debt.