| Real estate is the pillar industry of China’s national economy,and it has played a decisive role in driving China’s economic development in the face of the international financial crisis several times.The real estate industry has experienced decades of golden development under favorable conditions for all parties,and as the scale of real estate enterprises expands,the scale of their liabilities is also increasing,and risks are gradually accumulating.As a kind of debt financing,issuing bonds has become an important financing method for housing enterprises.As the government no longer pays for defaulted bonds,the era of rigid payment of credit bonds is broken.In 2018,real estate also joined the ranks of credit bond defaults,and the number of bond defaults in the real estate industry has gradually increased in recent years,especially since the issuance of the financing three red line policy in 2020,real estate bond defaults in 2021 have become the first defaults in various industries,and defaults have spread from small and medium-sized enterprises to top real estate enterprises.As the first domino effect of bond default triggered by the inability to pay interest on two overseas bonds by the top 15 real estate enterprise Yango Group Co.,Ltd.in February 2022,domestic bonds defaulted one after another,and its overseas bond issuer,YANGO JUSTICE INTERNATIONAL LIMITED,became the first real estate enterprise to be issued a winding-up order in October 2022.In this context,this paper first sorts out the default status of real estate enterprises,summarizes the current disposal situation of defaulted housing enterprises,and then selects Yango as a bond default case to study the reasons for bond default,and puts forward relevant countermeasure suggestions,hoping to provide similar housing enterprises with a little reference and enlightenment for the disposal of post-default bond default.Based on the study of bond default in Yango,this paper concludes that firstly,in terms of the reasons for default,the external reasons for bond default in Yango are mainly the tightening of financing policies in the real estate industry and the impact of institutional arrangements related to bond cross-default.The internal factors are that Yango has been strategically aggressive in recent years;The introduction of insurance capital investment increases performance pressure;Excessive external guarantees and high shareholder loan-to-value increase implied risks,thereby showing a large scale of debt and rapid growth in finance;Poor profitability,increasing revenue without increasing profits;Monetary funds are more limited,other receivables grow faster and occupy funds;Cash flow showed a net outflow and tight liquidity.Then,in response to the default of Yango’s bonds,the preliminary measures are sorted out,and then the following countermeasures and suggestions are proposed: First,at present,the insured housing enterprises take the guarantee of delivery as the priority and the central and local governments have issued a number of support policies for guaranteeing the delivery of buildings,Yango can seek local government assistance and introduce AMC institutions to inject liquidity into the suspended or delayed delivery projects to ensure the normal progress of the project;Second,at present,a number of defaulting enterprises have successfully promoted the rollover of the overall defaulted bonds,and creditors fully realize that the bankruptcy reorganization of the enterprise will have a negative impact on their interests when the short-term property market is difficult to recover,so Yango can try to promote the extension of the overall defaulted bonds,in addition to the option of hybrid debt restructuring;Third,if enterprises want to revive more,they need to rely on themselves,so they should control the three red line indicators in a targeted manner,avoid external financing constraints,carry out cash management in stages,and strengthen the turnover of funds. |
PDF Full Text Request