Research On The Risk Management Of Blue Ray Corporation's Perpetual Bond

In recent years,although China's economy has been developing rapidly,the real-estate industry,as an important pillar industry of the national economy,is becoming increasingly weak.In order to curb the "overheating" phenomenon of the industry,the "visible hand" of the national macro-control has been firmly controlling the real-estate market.Policies and regulations such as "purchase restriction" and "sales restriction" are emerging in an endless stream.In addition,the perennial high financial leverage of real-estate enterprises seriously hinders the refinancing ability of enterprises,and many internal and external factors impact the development of real-estate enterprises.Thus,perpetual bonds began to appear in China's bond market.It has become the "new favorite" of the real estate industry by virtue of its advantages of not increasing the debt ratio of enterprises,but also solving the financing problem of enterprises.However,there are two sides in everything.Perpetual bond brings benefits to enterprises and also brings potential risks.Therefore,in this paper,Blue Ray Corporation,the top three listed real estate companies in the industry in terms of the proportion of perpetual debt stock to net assets,is selected as a case study company to study the risks of perpetual bond financing.By combing and summarizing the research results of domestic and foreign scholars on perpetual bond financing,combined with the relevant characteristics of BRC's development of perpetual bond financing,this paper preliminarily identifies the debt repayment risk,profit risk,credit risk,compliance risk and policy risk brought by perpetual bond financing to BRC's development.The five kinds of risks are detailed,and 15 risk factors are selected out.For the first time,this paper constructs a risk evaluation system for the risk of the enterprise's perpetual bond financing from the perspective of the financing party,and uses the fuzzy AHP comprehensive evaluation method to comprehensively evaluate these identified risks.The conclusion is that the overall risk of perpetual bond financing of BRC is high level,among them,debt repayment risk,profit risk,compliance risk and policy risk are all at high level,but credit risk is at general level.According to the results of risk assessment,combined with the characteristics of BRC and the economic and policy situation of the industry,the paper puts forward the targeted risk control measures.At last,this paper summarizes and sublimates the research content,and points out that both the financing party and the investor of the perpetual bond should hold the correct risk consciousness.At the same time,it warns real-estate enterprises that,although national policies are promoting the development of perpetual bond financing,the prospect of future perpetual bond financing of real-estate enterprises is relatively optimistic,enterprises should not take lightly the risks brought such financing mode.They should do a good job in risk management of perpetual bond financing,so as to keep the risks under control.The contribution of this paper lies in: through the case analysis of the risk of the perpetual bond financing from the perspective of the financing party,this paper puts forward the author's point of view on the risk and corresponding measures of the financing of perpetual bonds,hoping to provide reference for the follow-up enterprises using perpetual bond for financing.