Research On The Effect Of China Heavy Industry's Market-oriented Debt-to-equity Swap Under The Background Of Mixed Ownership Reform

Debt-to-equity swap is one of the effective financial instruments to transform corporate debt into corporate equity,and to dissolve the bad debt risk of Banks and reduce corporate leverage ratio.Debt-to-equity swaps first appeared overseas.In the face of the serious debt crisis,Europe,the United States,Asia,a number of different countries have used debt-equity swaps to solve the debt pressure,relieve the pressure of bad loans in the banking system.In the 1990 s,in order to revitalize the non-performing assets of Banks and turn state-owned enterprises from losses to profits,China implemented policy-based debt-to-equity swaps for the first time.After the outbreak of the financial crisis in 2008,in order to cope with the economic difficulties of slowing GDP growth and sluggish external demand and insufficient domestic demand,China's proactive fiscal policy and relatively loose monetary policy are aimed at stimulating the sluggish economy,expanding internal demand and ensuring steady and rapid economic development.In recent years,the drawbacks of large-scale economic stimulus have gradually emerged,with traditional enterprises suffering from high leverage and overcapacity.In 2016,China kicked off a new round of debt-equity swaps,which emphasized the leading role of the market.At present,there is still a problem of low success rate of market debt-equity swap.As of the beginning of 2018,the landing rate is only 10%.By the end of the first half of 2019,the signing amount exceeded 2.4 trillion yuan,and only about 40 percent of the funds were in place.Under the new normal situation of China's economy,choosing target enterprises that meet the requirements to carry out market-oriented debt-to-equity swaps will not only help reduce the leverage ratio of enterprises and dissolve the financial risks of enterprises,but also improve the level of corporate governance and further deepen the reform of state-owned enterprises.This article selects the Chinese shipbuilding industry company limited(CSIC)as the research object,by using the method of case study in the theory of capital structure,ownership structure,on the basis of theory and the theory of corporate governance,based on CSIC profile and the marketization of CSIC implementation of debt turn background and implementation process are analyzed,found that the marketization of CSIC debt turn power mixed ownership reform effect is as follows:(1)The effect of capital structure: the marketization of debt turn significantly reduced the rate of assets and liabilities of CSIC,reduce the pressure of the debts of the enterprise,optimize capital structure,alleviate the possibility of enterprise financial risk happened.(2)Influence of ownership structure: successfully attracting investors to join,making its equity structure more diversified and avoiding the emergence of a single dominant equity structure.(3)Tthe effect of corporate governance effect: eight investment institutions were transformed from creditors to controlling shareholders,which played a good role in supervising and promoting the execution of CSIC.(4)Promote external integration: further promote the merger and restructuring of central enterprises,better participate in international competition,reduce vicious competition.By analyzing the marketization of CSIC convertible effects,the conclusion has the following these success factors:(1)subject to periodic ship industry and the influence of crude oil prices plunged.(2)of the financial crisis is temporary as listed companies,corporate information transparency,stock prices are low and relatively fair,so as to protect the bargaining mechanism.(3)It provides investors with a perfect exit channel,which is also a key factor for success.(4)Successfully attract the participation of social capital and stimulate the vitality of social capital.Therefore,in view of enterprises' market-oriented debt-to-equity swap,this paper puts forward the following Suggestions:(1)In order to avoid the incorporation of zombie enterprises,it is necessary to carefully select target enterprises to carry out market-oriented debt-to-equity swap.(2)The key to the smooth implementation of market-oriented debt-equity swap is to have a sound exit channel,actively explore the exit channel of market-oriented debt-equity swap,and explore a suitable market-oriented debt-equity swap mode according to the specific conditions of different enterprises.(3)Market-oriented debt-to-equity swaps actively utilize the power of social capital.This study can provide reference for enterprises that may implement market-oriented debt-equity swap in the future,and also provide reference for state-owned enterprises to deepen the reform of mixed ownership.