Research On Corporate Bond Default Of Shenwu Environmental Technology Co.,Ltd

The bond market is an important part of the capital market and financial market,as well as an important channel for economic entities financing.From the continuous expansion of market scale,the innovation of innovative products,and the richness and diversity of participating entities,the bond market has experienced leap-forward development.Up to now,Chinese bond market has become the third largest bond market in the world.The total stock of bonds market has increased from less than 8 trillion yuan in 2005 to 84.37 trillion yuan in 2017.By the end of 2017,the bond market balance accounted for 90.29% of GDP.However,with the rapid growth of Chinese bond market and the continuous diversification of product categories,the credit risk of the bond market keeps accumulating.Credit risk incidents have also gradually increased,bond defaults have gradually entered a normal state.With the downward pressure on the macro economy,default events occur frequently and the prevention of credit risk has become the theme of the Chinese bond market.So,it is necessary to analyze the bond default events and study the reasons for the formation of defaults.Based on the reference of domestic and foreign scholars research on bond default,this paper analyzes the reasons for the corporate bond default of Shenwu Environmental Technology Co.,Ltd.This paper mainly uses the case study method,the literature analysis method,the qualitative analysis and the quantitative analysis method.The whole article is composed of six parts,the introduction part explains the research background,the significance of the research and the related literature review of bond default in detail.The first chapter first defines the core concepts related to corporate debt,bond default,rigid payment and correlation party transaction,and then is an overview of the underlying theory of corporate bond default.The second chapter is the case background,which first introduced the current development of Chinese bond market,and then the comprehensive analysis of Chinese bond market default,including bond market credit risk evolution,default status quo,default factors and influences.The third chapter is the case summary,this chapter first introduces the main body of the bond issue company Shenwu Environmental Technology Co.,Ltd,and then the basic situation of default bonds,and finally elaborated the specific default process of the Shenwu Environmental Technology Co.,Ltd default bond.The fourth chapter is the case analysis part,first of all,this chapter analyzes the detailed reasons of the default of Shenwu Environmental Technology Co.,Ltd bonds from the different level including the macroscopic,industry,the company,and then uses the KMV model to analyze Shenwu Environmental Technology Co.,Ltd credit risk status before the bond default.On the basis of in-depth analysis of the default of Shenwu Environmental Technology Co.,Ltd corporate bond,this paper gets the reasons for the default of its bond,and puts forward some suggestions on the prevention of Bond credit risk by bond market investors,issuers and regulators in bond investment.This paper concludes that the main reasons of the default of the bonds Shenwu Environmental Technology Co.,Ltd are: On the macro level,the macroeconomic boom is down,the financial supervision is strict and the social credit shrinks.On the industry level,the energy saving and environmental protection service industry competition is large,the downstream enterprise development slows down,the initial investment of the project is so high.On the company level,the financial situation is poor,the proportion of accounts receivable continues to rise,the cash flow is deteriorating.The company has excessive expansion in management,the parent company has limited support,the related party transactions are frequent,and the parent company's high proportion of stock pledges touch the liquidation line.The addition in the shareholding plan was not fulfilled and other issues.