Analysis Of Bond Default Cases Of Brilliance Auto

China’s bond market has maintained a relatively stable status since its formation,and there has never been a default event before 2014.But this stability is not because the bond market is sufficiently stable and has maintained a healthy development,but because there has been an hidden rule in China’s bond market for a long time: rigid redemption.In particular,state-owned enterprises have implicit guarantees provided by the government behind them,the dual protection makes State owned enterprise bonds deeply trusted by investors.However,the Shanghai Chaori bond default event that occurred in 2014 ended this traditional pattern.Various hidden dangers buried by the abnormal development of the bond market in the past began to occur,and many corporate bonds defaulted one after another.Initially,defaults were concentrated in private enterprises,while state-owned enterprises remained detached.However,since the past few years,there has been a substantial increase in state-owned enterprises defaulting entities,and they have become normalized today.As the first AAA large-scale high-quality state-owned enterprise that reached bond default,Brilliance Group has aroused heated discussions.This paper selects 11 defaulted state-owned enterprises in 2020,sorts out their financial indicators,and analyzes the average changes of solvency,profitability and operating capacity of the 11 defaulting state-owned enterprises from 2018 to 2020 through the statistics of financial data,and summarizes the default Changes in the financial status of 11 companies in the first three years,and analyzes the operation of Brilliance Group at key time points before and after the default to determine whether it is suspected of evading debt,then conducts specific analysis,studies the causes of Brilliance Group’s bond default from both internal and external reason,and analyzes the economic consequences of Brilliance Group’s bond default from the company itself and the bond market.At last,summarize A few suggestions of debt risk prevention for state-owned enterprises of China based on the analysis above.It stands to reason that the overall qualifications of state-owned enterprises are better than that of private enterprises,and their financing channels are more extensive.When state-owned enterprises begin to break out of credit risk on a large scale,it indicates that the bond market has been riddled with problems and it is difficult to play its role.State-owned enterprises,like private enterprises,face the threat of bankruptcy and reorganization when their bonds default,and they will hit the bond market more severely.Therefore,it is of great practical significance to study the causes of state-owned enterprise bond defaults and summarize the suggestions for defaulting risk prevention of state-owned enterprises.It is hoped that the research in this article will enrich the research on state-owned enterprise bond defaults and make a contribution to building a long-term and healthy bond market in China.