Reflection And Improvement Of China’s Corporate Credit Bond Default Disposal Mechanism

Corporate credit bond offers important channel for the direct financing of China’s enterprises.No matter for the aspect of servicing the real economy or optimizing resource allocation,corporate credit bond has occupied a vital position in China’s bond market.With the failure of "last resort" of bond and the "usual" occurrence of default incident,more and more default bond needs urgent disposal.Bond default disposal is an essential part of the bond default incident,and bond default disposal mechanism is the key to ensuring the continuous and high-quality development of China’s bond market.With the "implicit cashing" and implicit guarantee of local government for a long time,and the incomplete law system related to bond investor protection,the current bond default disposal mechanism has relatively weak restriction on the behavior of bond issuer,and the methods and tools of bond default disposal are not diversified,which leads to the low level of marketization of bond default disposal,unsatisfactory effect of bond investor protection and other problems.The effect of corporate credit bond default disposal is not ideal.To improve corporate credit bond default disposal mechanism,we should first hold on to the bottom-line principle of no systematic financial risk occurrence,and guide the structure of disposal principles with marketization and legalization.Through bettering the basic regulation of corporate credit bond investor protection,we would further regulate the behavior of bond issuer and improve the relief path of corporate credit bond default disposal.