Research On The Case Of Bond Default Of Brilliance Auto

Since its establishment,China’s bond market has developed rapidly and has greater and greater influence.Unlike other countries,China’s bond market has a long-term expectation of rigid cashing from its establishment to 2014,and there has never been a real bond default in the past 20 years.However,after the "11 super day debt" in the financial market failed to be paid in time,everything became different.The situation of zero bond default in China’s bond market for more than ten years has been broken.Since March 2014,there have been a large number of bond defaults in China.The enterprises with bond default are not only private enterprises,but also state-owned enterprises.This phenomenon has sounded an alarm to bond investors.On October 23,2020,Brilliance Auto failed to exchange the private placement bond "17Huaqi 05" with a scale of 1 billion on time,resulting in substantial bond default.This event shocked the financial market,which had a great negative impact on the confidence of market subjects,especially bond investors.This thesis chooses the event of substantial default of bonds of Brilliance Auto,a state-owned enterprise,as the research object.This thesis mainly uses three research methods: case analysis method,financial index method,qualitative analysis method and quantitative analysis method to analyze,and expounds in detail the specific process of substantive bond default of Brilliance Auto.At the same time,this thesis analyzes the causes of bond default of Brilliance Auto from three aspects: macro,credit rating and the company itself,and then tests the default risk of Brilliance Auto with PFM model and Z-score Model for unlisted enterprises.After detailed analysis,we get the conclusions and lessons of this thesis.Firstly,the thesis introduces the background and significance of the topic.After reading and combing the relevant literature of domestic and foreign scholars on bond breach of contract,it puts forward the research contents and methods of this thesis,and introduces the theories related to bond breach of contract and the current situation of bond breach of contract in China;Secondly,by combing the bond breach of contract events of Brilliance Auto in detail,this thesis expounds the impact and consequences of the breach of contract events from three perspectives: Brilliance Auto and its subsidiaries,investors and bond market;Thirdly,the reasons for bond breach of contract of Brilliance Auto are analyzed from three perspectives.The macro level includes the tightening of financing environment,the slowdown of macroeconomic growth and the imperfect information disclosure mechanism,while the company’s own level includes the reasons for the lack of competitiveness of Brilliance Auto’s own brand,poor asset quality and weak solvency,The pfm-score model is used to verify the financial situation of non listed enterprises and enhance the persuasion of the pfm-score model;Finally,it puts forward some suggestions to prevent bond breach of contract.For bond issuers,they should actively develop their own brands,reasonably adjust the debt structure,maintain a good financial situation,disclose their own information in strict accordance with relevant regulations and operate in compliance;For supervision,we should strengthen the supervision of bond issuers and credit rating agencies,and improve the information disclosure mechanism;For investors,we should improve risk awareness and risk identification ability,make rational investment,diversify investment,strengthen the supervision of bond issuing enterprises and actively safeguard their legitimate rights and interests.