Analysis Of The Causes And Economic Consequences Of HNA Group's Bond Defaul

With the rapid development of the bond market,the default phenomenon of corporate bonds in China has become increasingly serious,which has aroused the general attention of the whole society.Therefore,it is of great practical significance to study the reasons for default and economic consequences of bond default cases,which can help financiers to finance more reasonably,regulators to supervise more effectively,and investors to invest more correctly to achieve better economic benefits.This article selects HNA Group,which has defaulted on bonds on a large scale in recent years,and its failure to repay its debt on time has reached 700 billion yuan,which has attracted widespread attention from investors.This article provides useful advice to relevant government agencies,enterprises and market participants by examining the root causes of HNA Group’s bond defaults and analyzing the economic consequences of defaults on enterprises.This thesis combines basic theory and practical cases,analyzes and summarizes the common causes and consequences of corporate bond defaults by combing the existing research literature and theoretical research results,and discusses the in-depth theoretical explanations behind them.In the case section,this thesis selects HNA Group as a research case,first introduces HNA Group’s development history,equity structure and financing channels,and explains the Group’s bond issuance and default.Secondly,this thesis analyzes the causes of HNA Group’s bond default from both the perspective of the external environment and the internal perspective,and concludes that the external causes of HNA Group’s bond default include the reduction of the scale of the bond issuance market and the decline in industry market demand.Internal reasons include the company’s high debt expansion strategy and improper development strategy,frequent intra-group transactions,lack of senior management level and ethics,as well as poor asset quality,insufficient operating income and unreasonable debt structure at the corporate financial level.Thirdly,this thesis deeply analyzes the economic consequences of HNA Group’s bond default through the event research method,the analysis of major financial indicators and the Tobin Q value method,and draws the following conclusions:First,the market reflects a downturn in the short term after the bond default of HNA Group,the attitude of investors is negative,and the stock price continues to decline;Second,with the aggravation of credit risk after default,the Group’s financial position deteriorated accordingly;Third,after the default,the group’s long-term sustainable operation ability deteriorated,the enterprise value decreased,and it faced a bankruptcy crisis.Through the analysis of HNA Group’s bond default cases,this thesis puts forward the following enlightenment and suggestions: the government should strengthen supervision,improve the market system,extend the deleveraging cycle,and alleviate the financial pressure of enterprises.Relevant rating agencies shall strengthen their rating responsibilities and promote the reform of the credit rating system.Enterprises should grasp the macroeconomic situation and combine their own development conditions to formulate scientific and reasonable development strategies with the times;Optimize the quality of internal control of enterprises;Pay attention to the ability training of the company’s employees;Open source and reduce expenditure,control costs while improving enterprise profitability,and ensure the source of working capital.