Set Up An External Fund To Study The Impact Of Market-oriented Debt-to-equity Swaps On Enterprises

In the current market economy environment,Chinese enterprises face two major problems of excessive financial leverage and excessive growth of debt scale.Their existence seriously restricts the growth and development of enterprises themselves.Since China implemented a round of policy-based debt-to-equity swaps at the end of the last century to solve the problem of excessive leverage and rapid growth of debt,the government has proposed a market-based debt-to-equity swap policy.In October 2016,the State Council issued the “Guiding Opinions on Converting Equity from Marketized Banks”,advocating that enterprises and banks implement debt-to-equity swaps under the principle of marketization and legalization,thereby reducing the debt burden of enterprises and The non-performing asset ratio of commercial banks,so that enterprises temporarily get rid of the financial management dilemma and achieve long-term sustainable development.Yunnan Tin Group(Holdings)limited liability company.(hereinafter referred to as “Yunxi Group”)is the first local state-owned enterprise to implement market-oriented debt-to-equity swap after the introduction of the guidance.Therefore,this paper selects Yunxi Group's market-oriented debt-to-equity swap.As a case study,after detailed introduction of the operating status and financial status of Yunxi Group before the implementation of market-oriented debt-to-equity swaps,we learned the motivation of Yunxi Group to implement debt-to-equity swaps,and then analyzed the Yunxi Group's implementation of debts through the establishment of external funds.The operation mode of the conversion and related program flow.Then it analyzes the characteristics of Yunxi Group's market-oriented debt-to-equity swap plan,and then discusses in depth the implementation of debt-to-equity swaps by Yunxi Group for the company's operations,finance,corporate governance and internal control.The impact.Then this paper puts forward the difficult problems encountered by Yunxi Group in implementing the market-oriented debt-to-equity swap and the unsatisfactory flow of equity exit channels,In response to these difficult problems,it proposes multi-channels to provide capital support,reduce bank capital adequacy ratio,establish credit evaluation system for debt-to-equity swaps,improve the mechanism for debt-for-equity swaps,and formulate corresponding policies for promoting the implementation of debt-to-equity swap programs.Finally,the article concludes that although the debt-to-equity swaps reduce the company's liabilities and lower the interest expenses,it can only temporarily ease the financial situation of the company.In the long run,the improvement of the financial situation requires the company to develop a development strategy suitable for itself.Fundamentally improve the business status and financial status,in order to continuously improve the intrinsic value of the enterprise,which can provide reference for other enterprises that plan to implement market-based debt-to-equity swaps.