The Effect And Experience Of Market-oriented Debt To Equity Swap Of State-ownde Enterprises

In the context of deleveraging,many state-owned enterprises are faced with many problems,such as high debt ratio,low income,unstable capital chain,etc.as the main means to reduce the macro leverage ratio,debt to equity swap once again appears in the public’s vision.Unlike the previous round of government led debt to equity swap,this debt to equity swap appears in the way of market-oriented bank debt to equity swap,and the target enterprise transfers the debt to In the whole process of implementation,the government does not bear the loss and responsibility.The scheme of market-oriented debt to equity swap is not only conducive to reducing the leverage ratio of enterprises,but also conducive to giving full play to the positive role of the market in resource allocation.This paper selects the case of market-oriented debt to equity swap of China Railway Co.,Ltd.to study the effect of debt to equity swap of China Railway through the combination of case study and radar chart analysis,and to explore the effect of enterprise deleveraging.First,through combing the research background of market-oriented debt to equity swap and reading a large number of relevant literature,find out the problems,determine the significance and value of the article research;secondly,analyze the problems found,including theoretical analysis and case analysis.On this basis,it discusses the basic situation,equity structure,financial situation of the case enterprise,the background,motivation and content of the implementation of this round of market-oriented debt to equity swap,and summarizes its operation flow chart.This paper focuses on the analysis of the implementation process and performance of China Railway’s market-oriented debt to equity swap,and comprehensively and objectively evaluates this round of China Railway’s market-oriented debt to equity swap from four aspects: the implementation organization,the form of investment,the price of the swap and the exit mechanism;at the same time,it uses the radar chart analysis method to analyze the company’s financial performance horizontally and vertically,and analyzes the non-financial from two aspects of equity structure and corporate governance Changes in business performance.Through the case study,it is found that the successful implementation of China Railway’s market-oriented debt to equity swap is due to the innovation of the market-oriented debt to equity operation mode,the combination of scheme design and enterprise advantages,and the combination of the conversion price and the interests of investors.The market-oriented debt to equity swap implemented in thisround has greatly improved the company’s operating capacity,and also reflects the positive effect of the plan,so as to promote the long-term development of China Railway.Finally,according to the results of the case implementation,the paper summarizes the successful experience and shortcomings of the case enterprise’s market-oriented debt to equity scheme,and puts forward suggestions to explore diversified market-oriented debt to equity operation mode,strengthen corporate governance,improve business performance,reduce the risk of debt to equity,and increase the competitiveness of debt to equity.Then we get the following enlightenment: deleveraging is not the umbrella of the enterprise,the enterprise should do a good job in controlling the leverage ratio in advance.We need to promote the development of financial science and technology,guide enterprises to make rational financing,successfully achieve deleveraging,solve the debt problem,and achieve a balance between stable leverage and stable growth.Through the analysis of the case of China Railway market-oriented debt to equity swap,it is expected that the successful experience of the case enterprises can provide valuable reference for other companies in China to design the market-oriented debt to equity swap scheme,and provide reference for other state-owned and large-scale private enterprise groups to successfully implement the market-oriented debt to equity swap scheme in the future.