The Research On The Causes And Economic Consequences Of Bond·default Of HC Automobile Company

State-owned enterprises with high credit ratings such as HC Automobile Company.Yongmei Group,and Ziguang Group have successively defaulted on their bonds in 2020,setting off a wave of "state-owned enterprise defaults",which caused a great stir in the bond market and made the bond market face a serious crisis of confidence.This event has aroused the attention of professionals from all walks of life.Therefore,it is of practical significance to conduct in-depth research on the causes and economic consequences of state-owned enterprise bond defaults.This thesis takes the default event of HC automobile company bonds as the research object,adopts the method of combining theoretical analysis and case analysis,and uses principal-agent theory,financial distress theory,stakeholder theory and cash management theory.After introducing the bond default process of HC Auto Company,this paper studies the causes of bond default of HC Auto company,from the perspective of cash management,It also analyzes the economic consequences of bond default,and finally puts forward countermeasures.The study found that the direct cause of bond default of HC Auto Company was the insufficient cash stock of the company,the "failure of both investment activities and cash flow of operating activities",and the difficulty of refinancing,which led to the company’s inability to support the high principal and interest of bonds with centralized maturity,leading to the fracture of capital chain and ultimately the occurrence of bond default.The fundamental reason for the company’s bond default is that the company’s cash stock is insufficient,the cash flow from the main business continues to be negative due to the poor profitability of the main business,the tightening of operating policies,and the repayment of debts occupying a large amount of working capital.Due to blind investment and limited disposal of assets,the cash flow obtained from investment income is not as expected.However,the company’s debt scale is too large and concentrated maturity,the financing structure is unreasonable and the channel is too single,resulting in the company’s refinancing difficulties.Through research,this thesis proposes the following countermeasures to prevent the risk of bond default:First of all,the company can strengthen the management of cash by establishing a financial risk early warning mechanism to ensure that there is enough cash flow to support the normal operation of the company’s business activities.Secondly,the company should cultivate the core competitiveness of products to improve the profitability of the main business.Thirdly,the company should do a good job of investment analysis in advance and invest prudently to ensure that investment returns meet expectations.Finally,the company should optimize the financing structure and broaden financing channels to ensure that it can successfully raise financing.