Research On The Case Of Bond Default Of Jinzhou Cihang

Throughout the domestic bond market,the development of bonds is thriving,but bond defaults are becoming more apparent.Since 2014,the bond market of China has experienced a bond default event for the first time.The phenomenon of debt default has gradually developed into varieties of industries,showing a normalized development trend.At the same time,private enterprises have become a high-risk group of defaults.Under the deleveraging economic policy,the government has updated the relevant fund management regulations.Financial institutions have tightened their investment in foreign countries.As the rigid redemption policy of the bond market is broken,debt defaults will inevitably occur.It has far-reaching consequences for financial markets,debtors and creditors alike.Jinzhou Cihang is an early batch of enterprises engaged in gold processing.Since 2018,the net profit of Jinzhou Cihang has decreased year by year.The company issued an announcement that the first tranche of bonds failed to perform.A year later,the company declared a material default on the bond.In this context,this thesis studies the default of Jinzhou Cihang bonds,and analyzes the reasons for its default from the internal and external aspects.It provides ideas for related enterprises to prevent,control and respond to risks,which has important theoretical and practical significance.The thesis takes Jinzhou Cihang as the research object.It is based on literature research,case studies,qualitative and quantitative analysis as its method.It is analyzed from different perspectives,while using various methods.First,it elaborates on the current status of issuance in the Chinese debt market,while summarizing the trend of default in the debt market.It examines the literature on bond defaults as a basis for further research.Secondly,it introduces the basic information,equity status and operating business of Jinzhou Cihang.It also provides a detailed overview of the entire bond default process.In addition,it also analyzes the reasons for the default of Jinzhou Cihang bonds from both the external environment and internal conditions.It uses the ZETA model to analyze the default risk of Jinzhou Cihang bonds.It also calculates the bond default probability to quantify the default risk.Then it summarizes the economic consequences of Jinzhou Cihang default event from three aspects: stock price,credit rating and management.Finally,according to the analysis of the reasons for the default of Jinzhou Cihang bonds,it puts forward enlightenment and suggestions for the four related subjects of external supervision and rating agencies,bond issuers and investors.It is hoped that it can contribute to supervising the behavior of bond-issuing companies for regulators,improve the accuracy of credit rating results,protect the interests of bondholders,and create a good investment atmosphere in the bond market.