The Reasons And Enlightenment Of Private Enterprise Bond Default

In recent years,China 's bond market has developed particularly rapidly,But with the increasing degree of activity of China's bond market,the number of bond defaults has been rising.At the same time,the default of private corporate bonds is particularly prominent.What causes the default of private enterprise bonds,has become an urgent issue.In this context,the article takes private companies that have concentrated outbreaks of bond defaults in recent years as research objects.First,from a holistic perspective,analyze the reasons for the current default of the private enterprise bond market in China.Then,on the basis of holistic analysis,the article takes Wintime Energy,a typical representative of private enterprise bond default,as an example to carry out case analysis,combining the holistic analysis with case analysis.Finally,obtain the general reasons leading to the default of private enterprise bonds.This article concludes through research that the factors that cause private corporate bonds to default are as follows: First,macroeconomic structural adjustments such as "environmental protection" and "capacity reduction" have squeezed the profitability of private enterprises;Second,the tightening of financial supervision policies has a greater impact on private enterprises,increasing the difficulty of financing for private enterprises;Third,there is an unreasonable phenomenon in the credit rating of private enterprise bonds,which increases the probability of default in the private enterprise bond market and is not conducive to the healthy development of the private enterprise bond market;Fourth,compared with state-owned enterprises,internal risk control of private enterprises is weaker;Fifth,private enterprises are easy to formulate unreasonable strategic plans;Sixth,the weak recovery capacity of private enterprises indirectly affects their solvency.This paper explores the causes of the default of private enterprise bonds,and hopes to provide some lessons for private enterprises and provide some references for avoiding debt crisis in the business process.