A Study On Default Of The Corporate Bond In China Based On Cases

With the development of China's capital market,bond financing is playing an increasingly important role in the social financing system,but at the same time,the frequent occurrence of bond defaults has also made the community pay attention to this issue.Academic research on issues related to bond defaults has become indispensable.In this paper,from 34 cases of bond default in 2018,three representative cases are selected to analyze the reasons for default and the characteristics of the industry.Among the typical cases of default,Gangtai Group defaulted mainly because of the blockage of external financing channels,Chuying Agro-pastoral Group defaulted because of industry shocks,and China Finance Co.,Ltd.defaulted because of blind expansion.Gangtai Group,Chuying Agro-pastoral Group,and Zhongrong are all under the pressure of the tightening of external social financing,which eventually leads to default because of the problems of cash flow management.Based on the analysis of the causes of default,this paper argues that the company needs to maintain abundant cash flow and deal with liquidity crisis by broadening internal and external financing channels,strengthening the operation of main business,and making reasonable investment.Rating agencies should establish a more reasonable and standard rating system;timely discovery of the risk of issuers during the bond tracking period;and regulatory agencies need to We should unify the supervisory responsibilities and pay attention to the risks of issuing subject's external guarantee and equity pledge.Although the occurrence of bond default makes investors suffer losses,it is of great significance to break the rigid rules of the credit market in China and to establish the correct matching of risk and return,as well as the marketization of interest rates.At the same time,how to solve the financing difficulties of private enterprises also poses new challenges to the government.