A Study On The Motivation And Effect Of Introducing State-owned Capital Bail-out To Originwater

In 2018,Sino-US trade frictions and strong financial regulation caused turbulence in the capital market,which led to a large-scale expansion of the stock pledge,and the superposition of liquidity risk and credit risk increased,resulting in the crisis of liquidation of most enterprises’ stocks.Private enterprises before "borrow the new to return the old" stock pledge model is difficult to continue,into the financing difficulties,especially the environmental protection industry before the large-scale development of the crisis accumulated in the volatile market environment erupted,some enterprises have increased financing difficulties,bonds and debt defaults and a series of problems,may face the breakdown of the capital chain.In order to prevent the spread of equity pledge risks and maintain the stability of the capital market,the government has introduced various rescue policies and formulated a variety of rescue measures to solve the financial difficulties faced by enterprises and reduce the risks caused by equity pledge.Therefore,private enterprises have introduced state-owned capital rescue around2019,and the introduction of state-owned capital rescue is an efficient "emergency" measure,which can reduce the proportion of equity pledge in a short period of time and alleviate the liquidity crisis of enterprises.This paper first reviews and summarizes the relevant literature on the introduction of state-funded bailout by private enterprises.It is understood that the literature research on the introduction of state-funded bailout in China is short in time,with few academic studies,and focuses on the operation and implementation of the bailout mechanism from the perspective of the bailer,and there is a lack of case studies on the bailed-out party.However,the research conclusions on the motivation and effect of the introduction of state-funded bailout are relatively consistent.Therefore,based on the literature review and the actual situation of enterprises,this paper makes an in-depth analysis of the motivation of the introduction of state-owned capital relief into Originwater and the effect of the integration of the two sides after the introduction.After analysis,this paper believes that the main motivation for introducing state-funded bailout is the financial dilemma caused by high equity pledge risk.Previously,as an asset-heavy enterprise,the company needed a large amount of working capital support to carry out its business,while the market was flagging and conventional financing was more difficult,so state-funded bailout was the fastest and most effective financing method.The analysis and evaluation of the rescue effect is carried out from the corresponding motivation.From the perspectives of financing,coordination and governance,it is found that the financing effect is the most significant after the introduction of state-owned capital rescue.The support of state-owned capital background effectively alleviates the liquidity dilemma of Originwater.In terms of synergies,business synergies have gradually emerged,and operating performance has increased;The participation of state-owned enterprises has optimized the ownership structure of Originwater and effectively improved its governance level.The research conclusions of this paper have important theoretical significance and practical guidance significance,and enrich the existing research on state-owned assets rescue,hoping to provide reference for enterprises in trouble in the introduction of state-owned assets rescue.