Research On The Case Of Bond Default Of Tunghsu Optoelectronic

In recent years,with the continuous decline of the macro economy and the continuous development of China's bond market,the problems caused by debt financing have gradually begun to appear.At first,due to the existence of "rigid redemption" in China's bonds,bond defaults did not really occur.However,under the unfavorable trend of the macroeconomic environment,it is obvious that the bond market that depends on the real economy cannot "stand alone." In March 2014,the “11 Chaori Bonds” declared a breach of contract.According to wind information report,since the "11 Super Japanese Bonds" broke the myth of "rigid redemption" of China's bonds,China's bond market has ushered in a "wave of default" again and again,with a total of 24 defaults in 2015.The default amount was 12.78 billion yuan,rising to 177 defaults in 2019,with a total of 143.528 billion yuan in default.As China's bond default problem intensifies,the study of bond default risk becomes very important.On November 18,2019,Tunghsu Optoelectronics issued an announcement stating that “2016 First Midterm Notes(Variety One)”(Bond Abbreviation: 16 Tunghsu Optoelectronics MTN001 A,Bond Code: 101659065)and “2016 First Midterm Notes(variety 2)"(bond abbreviation: 16 Tunghsu Optoelectronics MTN001 B,bond code: 101659066)shall complete the resale interest payment on November 18,2019.Due to the temporary short-term liquidity difficulties of the company's funds,the above-mentioned varieties failed to pay the interest payable and related resale payments as scheduled,and officially declared a breach of contract.This article analyzes the reasons of Dongxu Optoelectronics' bond default by reading and referring to the relevant research on bond default by scholars at home and abroad.The main reason is excessive inflation.When the economic environment and situation change,the lack of focus on the main business leads to problems in the profitability of the group;the second is that the liquidity prediction and mobilization of the entire group are not in place.This article describes the default process of Dongxu Optoelectronics,analyzes the reasons for bond defaults from the perspective of macro regulation,rating industry,and company,and finally proposes corresponding countermeasures from the level of regulation,company,and investor.Hope this article can promote the healthy development of China's bond market To increase investors' awareness of risk prevention.