Research On Capital Risk Management Under The Situation Of Serial Default Of Tunghsu

China is in a critical period of economic transformation.Market supervision is becoming more stringent,COVID-19’s multi-path impact is superimposed,some enterprises are stranded in the risk management of capital chain,and the bond market is currently setting off a new round of breach of contract.Due to the difficulty of resolving market credit risk and capital risk in the short term,a series of bond defaults are constantly fermenting.On the one hand,it means that the defaulting enterprises of serial bonds have been exposed to the risk of serious capital chain rupture,which can easily lead to the interruption of production and operation,loss and even bankruptcy.On the other hand,it may induce the fracture crisis of the whole capital chain of the real economy,followed by the reduction of market demand,and even lead to financial paralysis,which will seriously consume the social economy.Since capital chain risk management is the premise for the continuous development of enterprises,it occupies an important position in the theoretical and practical circles of enterprise financial management.Therefore,to trace the source and solve the problem of serial default of corporate bonds,we should strengthen the risk management of capital chain.Tunghsu is a large listed private manufacturing enterprise.Due to liquidity difficulties at the end of 2019,four bonds have been in substantive default for three years in a row until December 2,2021.It is very typical to study the capital chain risk management through the serial default events of corporate bonds.This paper combs the background of the serial default of Tunghsu bonds,combined with the financial data of Tunghsu in recent three years,and carries out the risk identification and evaluation of its capital chain in detail from the three stages of financing,investment and capital recovery.The basic conclusions are as follows:(1)The financing risk is high: the financing period structure of the enterprise is abnormal,the capital structure is unreasonable,the financing channel is too single and the cash flow quality of financing activities is poor.(2)The investment risk is also high: the adaptability of enterprise investment structure is poor,the investment efficiency is low,the investment ability is greatly constrained and the cash flow risk of investment activities is high.(3)The risk of capital recovery is also high: the operation and cash earning capacity of the enterprise is low,and the sufficiency and stability of cash flow from operating activities are not high.According to the risk assessment results of the capital chain in the above stages,it is proposed that Tunghsu should avoid,reduce,transfer or bear the risk in the case of bond serial default:(1)Countermeasures and suggestions for financing risk control: actively and gradually repay the debt;Control the debt equity ratio and try project financing;Sign the extension agreement with the creditor;Establish a supporting system for financing and a sinking fund.(2)Countermeasures and suggestions for investment risk control: selective stripping of negative related projects;Carry out project investment feasibility analysis,etc;Try joint operation and outsourcing;Increase the enterprise’s core R &D investment and withdraw the provision for impairment.(3)Countermeasures and suggestions for the risk control of fund recovery: improve the customer credit management system;Use big data,blockchain and other technologies for asset disposal;Try factoring and liquidation of accounts receivable;Establish inventory falling price and bad debt reserve system.It is hoped that this paper can bring some enlightenment to the practice of Tunghsu capital chain risk management,which is deeply in financial difficulties,and provide reference for the capital chain risk management of relevant enterprises.