Research On The Case Of Bond Default Of Shenwu Environmental Company

In recent years,the uncertainty of international and domestic economic environment has increased.From a global perspective,the trade war initiated by trump,the acceleration of interest rate hikes by the central Banks of many countries around the world,the gradual downturn of the "trump economy" in the United States,and the global geopolitical twists and turns,etc.Domestically,China's economic growth is under constant pressure,the leverage reduction policy is firmly advancing,and the domestic stock market will remain sluggish for a long time in 2018.Changes in macroeconomic policies have a profound impact on the development of micro entities.Under such circumstances,China's bond default ushered in a new wave of climax.Since the beginning of 2018,both the number of default bonds and the default amount of default bonds in China have set a record high.On March 14,2018,the "16 Huanbao bond" issued by shenwu company has materially defaulted,which is the first case of bond default in China's environmental protection industry,and this case is typical and representative.Therefore,this paper selects the default of shenwu environmental protection company's bonds as the research object,USES the case analysis method to make a detailed analysis of the default process and causes of "16 environmental protection bonds",and summarizes the enlightenment of this case to the market participants..Firstly,it makes a detailed analysis of the bond default in China in recent years,and finds that the current bond default in China has the characteristics or trend of wide industrial distribution,diversified default subjects,diversified types of default debts,wide distribution of default subjects,and imperfect default disposal system.Secondly,taking Shenwu environmental protection company's bond default as an example,this paper sorts out the process of Shenwu environmental protection bond default event and subsequent disposal measures.Thirdly,this paper analyzes the default of Shenwu bonds from three aspects: macro-economy,industry development and corporate governance.The uncertainty of international economy and finance,the change of domestic financial policy environment and the tight financing channel are the circumstances of the default of Shenwu bonds.From the perspective of the environmental protection industry,the solidified business model and increasingly severe financial situation of the environmental protection industry are the industry background for Shenwu environmental protection.In addition,the financial situation,financing risk,business model,corporate strategy,related party transactions and other issues of Shenwu environmental protection are important reasons for corporate bond default.Through the above analysis,this paper concludes that the default of Shenwu environmental bonds is not only caused by the reduction of financing channels and financing difficulties caused by the macro environment,but also has the development limitations of the environmental protection industry itself,but at the same time,the internal governance of the company is the root cause of its default.Finally,the article summarizes and distills the enlightenment to the company,the supervision,the investor,In order to effectively reduce the default risk of bonds and protect the rights and interests of investors,differentiated deleveraging policies should be implemented to effectively alleviate the financing difficulties of private enterprises,bond issuers should improve the level of corporate risk control and improve corporate governance.Regulators should improve the bond supervision system and play the role of the market in dealing with bond defaults.Investors should also enhance their risk awareness and enhance their ability to safeguard their investment rights and interests.