The Analysis Of Kangde Xin’s Bond Default Case

Since the issuance of China’s national debt was resumed in 1981,the bond market has been developing for nearly 40 years.Prior to 2014,there has been a "rigid payment" phenomenon in China’s bond market,and the government has always made implicit guarantees.With the advent of China’s "new normal" economy,China has gradually shifted from high-speed development to high-quality development.The "deleveraging" of the country’s macroeconomic regulation has reduced economic growth,increased corporate financing costs,and reduced corporate solvency,Leading to an increase in bond defaults.According to wind data,the number of bond defaults in 2019 was 173,the amount of bond defaults was 137.387 billion yuan,and the number of default bonds far exceeded the number in the same period last year.Under the above background,this article takes Kangde Xin’s bond default as an example to study the causes of its bond default.The second chapter of this article will introduce Kangde Xin’s default cases,and the third chapter of this article will introduce Kangde Xin’s bond default.Analyze the reasons,and analyze the reasons for the default of Kangde’s new bonds from the macro,industry,company and inter-bank bond market regulators.Finally,the article also draws corresponding enlightenment to the inter-bank bond market regulator and issuer.It is also one of the main innovations of this paper to expand the analysis of Kangde Xin’s bond default to the analysis of the regulators of the inter-bank bond market.This paper analyzes the case of Kangde xin’s bond defaults,and finds that the main reasons for default are: first,the macroeconomic downturn,and the decline in the company’s profitability is one of the main reasons for the decline in the company’s solvency,but it is not an important factor;second,The company’s problems are the main reason for bond defaults.For the financial analysis of bond issuing companies,in addition to analyzing whether the indicators such as profitability,solvency,and operating capabilities are up to standard,it is also necessary to analyze whether the company’s financial statements conform to normal business logic and whether there are financial frauds such as "high deposits and high loans." It is found that Kangde Xin is suspected of financial fraud,controlling shareholders’ use of cash centralized management loopholes to embezzle cash from listed companies,inadequate company information disclosure,and excessive expansion of controlling shareholders are important reasons for corporate bond defaults;third,the development process of China’s bond market Shorter,the supervision of the inter-bank bond market is urgently needed to improve the strength of the issuer,bond issuance intermediary and other related systems,and the regulator should more clearly divide the responsibilities of each intermediary,maintain its full independence,and increase fraud penalties To fully promote the sound development of the bond market.