Analysis Of The Causes Of Default Of Chinese Listed Private Enterprise Bonds

In recent years,the scale of Chinese bond market has continued to expand and the types of bonds have been continuously enriched,which has become an important part of Chinese capital market.But as the economy entered the "new normal" and rigid redemption was gradually broken,bond default events occur frequently.According to Wind data,as of the end of 2018,a total of 320 bonds of 109 defaulting entities in the Chinese bond market defaulted,and the scale of bond default was as high as 240.281 billion yuan.In the past two years,the focus of Chinese economic policy has gradually shifted from “de-capacity” to“de-leverage”,and private enterprises are facing large bond default risks.With the further deepening of “de-leverage”,private enterprises with better performance in the past few years have entered a period of high risk of bond default.In 2018,there were 33 new private default entities,a total of 124 bonds defaulted,and the scale of default was as high as110.419 billion yuan.Therefore,it is of great practical significance to study the causes of default of private enterprise bonds in China.Based on the empirical research method and case analysis method,this paper analyzes the factors affecting the default of private enterprise bonds in China,and analyzes the causes of the default of Yinyi bond in combination with specific cases.First of all,this paper makes a descriptive statistical analysis of all the default bonds of private enterprises,and summarizes the status quo and characteristics of Chinese private enterprise bond default.Secondly,from the perspective of macroeconomic environment and micro-enterprise characteristics,the combination of qualitative and quantitative methods is used to analyze theinfluencing factors of private enterprise bond default.Then,combined with the typical case of Yinyi,a private enterprise bond default,the basic situation of the case is introduced.On the basis of the default process,the reasons for the default of Yinyi Securities were analyzed from two aspects: external factors such as macro environment and industry status,and internal factors such as high equity pledge rate,over-expansion,corporate governance and financial status.Finally,based on the prevention of default risk of private enterprise bonds,it puts forward relevant suggestions to private enterprise bond issuers and investors,hoping to promote the healthy development of private enterprises and bond markets in China.This paper mainly draws the following conclusions: First,the frequent occurrence of private enterprise bond defaults is closely related to the current macroeconomic downturn and industry downturn.At the same time,this paper uses the binary logistic model to find that the solvency,growth,operational and profit ability of private enterprises are important financial factors affecting the default of private enterprise bonds.Second,the reason for the default of Yinyi Securities was affected by the poor macro environment and the sluggish automobile industry.At the same time,its short-term solvency and the weakening of its growth capacity are important financial factors for its default.Third,the blind investment and over-expansion of Yinyi in recent years,as well as the existence of high equity pledge rate,large proportion of dividends and insufficient corporate governance have made the company's cash flow situation worse,which is the main reason for the default of Yinyi Securities.