Research On Market-oriented Debt-for-equity Swap

China has experienced rapid economic growth in the past few decades.Behind this great achievement,some new problems have been constantly exposed.Overcapacity,environmental pollution,real estate bubbles and other problems are worsening,which have seriously hindered China's economic development.In order to ensure that China's economy can survive the current bad situation smoothly,the Chinese government puts forward the good recipe of "supply-side reform" to cope with it.Market-oriented debt-for-equity swap has been implemented again as an important part of supply-side reform.In the early 1990 s,our country has begun to practice research of debt-for-equity,at that time,our country is still in the early of reform and opening up,the market economy system is still immature,to solve the debt crisis of state-owned Banks in our country,set up the big four state-owned asset management companies to spin off the debts of state-owned Banks,for our country economic system transformation provides a powerful guarantee,the debt of stock effectively alleviate the crisis but internal problems have not been solved.In 2016,the leverage ratio of Chinese enterprises rose beyond a reasonable range again.In order to solve the new debt crisis,debt-for-equity swap was once proposed.At this time,China's economic system was improved.Through market selection,enterprises and financial institutions facing debt crisis will be combined to achieve mutual benefit and win-win results.This paper takes the debt-for-equity swap of shaanxi coal and chemical group as the research object to study the effect of this debt-for-equity swap.This paper takes shaanxi coal chemical group,an enterprise with high leverage ratio,as the research perspective,combines the background of the coal industry where the enterprise is,and USES the analysis method learned to discuss the conclusion and significance of debt-for-equity swap implementation.In this paper,shaanxi coal-to-chemical corporation's debt-to-equity swap is selected because this debt-to-equity swap is the first debt-to-equity swap led by local AMC and also the first debt-to-equity swap participated by urban commercial Banks.This research may provide reference experience for future development of debt-to-equity swap market.Turn the implementation of the debt on the one hand,to expand the scope of debt-for-equity implementing agency,the first in this paper,by comparing the two debts into shares,and analyze the advantages and innovation of debts into shares,and then combining with the characteristics of shaanxi coal chemical industry group enterprise and industry environment,summarizes the necessity of the coal chemical industry in shaanxi province to implement debt convertible and advantage.In the second half of this paper,the short-term market effect and long-term financial effect of the debt-for-equity swap on shaanxi coal and chemical group are emphatically analyzed.In order to make the debt-for-equity swap effect more intuitive and clear,this paper USES empirical research and financial data analysis to show the impact of debt-for-equity swap on enterprises.Finally,combined with the case,the conclusion and enlightenment of this market-oriented debt-for-equity swap are put forward.As a tool to stabilize economic development,debt-for-equity swap requires further development and improvement in internal governance of enterprises while solving the debt crisis of enterprises.