A Case Study Of Analysis And Prevention Of Zhuhai Zhongfu Bond Default Risk

In 2015,the Zhuhai Zhongfu bond default event as a case study,according to the Zhuhai Zhongfu bond defaults,we stand in the corporate governance,management decision-making and management and financial point of view,through the study of Zhuhai Zhongfu bond default risk,to find out the major risk factors of Zhuhai Zhongfu bond default,put forward specific measures for risk prevention and control.The research process can be used as a reference case for the prevention and control of the default risk of listed companies.This paper is based on the following background: with the continuous improvement of China's capital market,the bond market has also been rapid development.At present,the way of bond financing has been widely adopted by enterprises,and has become one of the most important financing methods in China's capital market.However,after more than 30 years of development,the risk of default of bonds has been exposed for a long time.From the beginning of 2014,China's bond market has broken the rigid payment phenomenon for a long time.In recent years,the decline in macroeconomic growth,overcapacity problems,many companies affected by the operating situation,solvency has declined,the risk of default bonds increased.Since 2014,the number and amount of bond defaults are showing a rapid growth trend,so how to prevent the risk of bond defaults,we are facing and the urgent need to solve the problem.Zhuhai Zhongfu bond default is one of the many bonds in China is a typical case of default events,because there are many problems in the tunneling of large shareholders and the radical investment company,the risk of default for Zhuhai Zhongfu bonds from corporate governance,management decision-making and management and financial three angle analysis,and using the Z-score model of Zhuhai Zhongfu the risk of default size estimate.On this basis,the paper puts forward feasible risk prevention and control strategies.In this paper,we found that: first,poor corporate governance,management decision-making,poor management and financial deterioration will increase the risk of default.Second,when the company's internal governance is poor,not suitable for bond financing.Third,when the issuer of the bond issuer in the presence of large shareholders and executives collusion,the independent director system is difficult to effectively safeguard the interests of bond investors.Fourth,Zhuhai Zhongfu bond default risk can be measured by Z-score model,and company's Z is in bankruptcy area described by Z-score model.Company in the baseline default value is below 1.81 for many years,with large bond default risk.This paper hopes to put forward suggestions of risk prevention and control strategies,help companies to improve their management,enhance the management level,so as to reduce the risk of default;on the other hand,it is hoped that the analysis and suggestions to investors how to determine the bond issuer solvency and default risk assessment to provide theoretical guidance and reference significance.