| After more than thirty years of development in China,the bond market has begun to take shape and has become a very important part of China's capital market.Bonds have a large scale of financing,low costs,almost unlimited use of funds,and long repayment terms.It has become the most commonly used direct financing method for enterprises.Many companies choose to obtain funds by issuing bonds to meet their own development.However,with the slowdown of economic growth in recent years,the transformation of the national economic structure,the continuous decline in business operating efficiency,and the market's credit risk gradually emerged.In 2014,the “11 ChaoRi Bonds” event broke the rigid payment situation and opened the curtain of bond defaults.Since then,more and more companies have defaulted on bonds.According to wind statistics,there were 179 default bonds in 2019,with a total amount of 144.408 billion.The risk of bond defaults continues to increase.The defaulting companies have spread from private to state-owned enterprises,involving all walks of life.From the perspective of the default bond types,they have gradually spread from medium to long-term bonds to short-term bonds.Redemption,so it is necessary to study this issue.The main writing method of this article is case analysis,which includes both literature research and financial data analysis.Taking Yinyi company as the research object,firstly introduce the Yinyi Co.Ltd.bond issuance and default process.From 2015 to 2016,Yinyi issued a total of 7 bonds and raised a total of 2.8 billion yuan."15 Yinyi 01" defaulted for the first time until 2019,the company had a total of 4 bonds defaulted,the capital chain was broken,and the debt crisis was deep.It had to go bankrupt and restructure.Secondly,analyze the reasons for bond defaults in detail from the inside and outside,which is also the core of the entire article.The external reasons include: under the background of deleveraging and strict supervision,corporate financing channels are limited;combined with the background of the industry,the real estate market is strictly regulated,the automobile sales market is in a slump,and the upstream manufacturing industry is greatly implicated.Excessive ratings issued bybond rating agencies are also one of the external reasons for default.From the perspective of the company,due to the regulation of the real estate market,Yinyi Co.Ltd.diversified and expanded.However,the merger and acquisition transformation failed,the main income fell sharply,and the profitability deteriorated.This also caused the company's internal governance issues,such as equity the proportion of pledges is too high,refinancing is difficult,large dividends hollow out the company's cash flow,and the capital chain is broken,resulting in bond defaults.In view of the above issues,some enlightenments are drawn.From the perspective of the enterprise itself,formulate reasonable merger and acquisition strategies,improve the corporate governance system and financial early warning system;from the supervisory level,it is necessary to unify the regulatory standards and improve the information disclosure system;for the rating agencies To improve their business level,change the rating model;for investors,improve risk identification capabilities and enhance risk awareness.In this way,the occurrence and harm of bond defaults can be reduced,and the stable development of the bond market can be promoted. |
PDF Full Text Request