Research On The Implementation Effect Of Market Oriented Debt To Equity Swap Of Meili Cloud

As early as the end of the last century,China launched the first round of debt to equity swap,which was mainly led by the government and participated by state-owned enterprises to solve the problems of large losses in state-owned enterprises and the high rate of non-performing loans in banks.Since the 18 th National Congress of the Communist Party of China,China’s economic development has shown new characteristics such as speed change,structural optimization,and power conversion.Some energy industries and manufacturing and processing industries have experienced overcapacity issues.During this period,the leverage ratio of enterprises has been rising,the debt burden of enterprises has increased,and the operation of enterprises has encountered difficulties.This has also exacerbated the operational risks of enterprises,increased the risk of debt default,and increased the incidence of non-performing loans by banks.Based on this issue,the government launched a new round of debt to equity swap in 2016.The most obvious feature of this round of debt to equity swap is to highlight the dominant role of the market,rather than the previous round of solely government led debt to equity swap.This also means that most enterprises can reduce the debt burden,improve profitability,and achieve sustainable development through debt to equity swaps.This policy was implemented in 2016,and it has only been over six years since then.It remains to be explored how effective enterprises implementing market-oriented debt to equity swaps have achieved during this period.Based on this background,the research object of this article,Meili Paper Industry,is a state-owned listed company with paper making as its main business.Due to the domestic macroeconomic downturn and overcapacity in the industry,Meili Paper Industry has fallen into a severe production and operation dilemma.In 2016,Meili Paper Industry completed the market-oriented debt to equity swap work through non-public offering of shares to repay debts,and its name was changed to Meili Cloud in the same year.Its debt risk has also been effectively alleviated,Transformed into a diversified industry listed company with three pillars of paper manufacturing,data center industry,and photovoltaic industry,it also became a model enterprise for market-oriented debt to equity conversion at that time.However,in November 2022,Meili Cloud bid farewell to the paper business through asset restructuring and "embarked on a new energy project",which can not help but make people begin to question the implementation effect of market-oriented debt to equity conversion.Therefore,this topic will take the case of Meili Cloud’s market-oriented debt to equity swap as the research object,comprehensively using the literature research method and case analysis method.Firstly,it will briefly summarize the development history,industry background,financial and operating conditions before debt to equity swap,and the application background of debt to equity swap of Meili Cloud,deeply understand the operation mode of market-oriented debt to equity swap,and explore the process of market-oriented debt to equity swap,Explain the behavioral logic of market-oriented debt to equity swap of listed companies.Then,it reveals the mechanism of the effect of market-oriented debt to equity swap on market performance,financial effect,corporate governance effect,business effect,and social effect.It comprehensively applies event research methods,factor analysis methods,and other methods to measure and comprehensively evaluate the application effect of market-oriented debt to equity swap.Finally,it points out the problems existing in the implementation of Meili Cloud’s market-oriented debt to equity swap,and proposes further optimization suggestions and measures to provide reference and guidance for other enterprises facing similar difficulties.