Research On The Causes And Countermeasures Of Bond Default Of CFLD

Bond market has become an important part of capital market in our country and is one of the main places for Chinese enterprises to conduct financing activities.However,the scale of bond defaults in China in 2021 has reached about 140 billion yuan,among which the scale of defaults in the real estate industry is 33.738 billion yuan,ranking first in all industries.Although the risk of bond default cannot be completely eliminated,the frequent occurrence of default events will also bring a lot of hidden dangers to economic and financial activities.As a real estate enterprise,CFLD is the enterprise with the largest bond default scale in2021.Chinese real estate enterprises are closely connected with the financial industry.Once a large-scale bond default occurs,it will seriously influence the stability of the financial industry and the development of Chinese economy.In 2021,the official implementation of national policies such as "Three Red lines" and "Real estate Loan Concentration Management System" has strengthened the monitoring of the real estate industry,increasing the financing difficulty of real estate enterprises,and many real estate enterprises are also facing liquidity crisis and default risk.Therefore,this thesis takes CFLD as the research object to summarize the reasons for large bond defaults of the company and put forward relevant prevention and response suggestions to provide reference for other real estate enterprises with similar situations.Firstly,this thesis analyzes the business model and financing structure of CFLD,and sorts out the situation of bond issuance,bond default and the impact of default of CFLD.Then it analyzes and summarizes the causes of bond default of CFLD,which are as follows:the development cycle of industrial town project is long,and the capital is occupied largely.Therefore,the development of the industrial town project needs to be financed by the sales of real estate.However,due to the purchase restriction policy around Beijing and the outbreak of COVID-19,the real estate sales cannot provide sufficient funds for the operation of the industrial town.In addition,corporate strategy of CFLD has been aggressive in recent years and its rapid expansion has also led to the tight liquidity.Finally,the introduction of the new financing policy in 2021 and the concentrated maturity of bonds and other debts jointly led to the occurrence of default events of CFLD.This thesis also calculates the default risk of CFLD based on modified Z-Score model and KMV model,and identifies risk trend of CFLD.The results show that default event of CFLD does have a high default risk in the first quarter of 2021.It indicates that the combination of the two models can reflect the default risk and the occurrence of early-warning default events of the company to a certain extent.Finally,this thesis puts forward some suggestions on how to make reasonable strategies,control the expansion speed,optimize the PPP model,strengthen capital management,improve the risk early warning mechanism,stabilize production and operation,and dispose of assets with poor benefits.