Research On The Causes And Countermeasures Of The Bond Default Of F Holding Company

Since China cancelled the bond "rigid payment" policy in 2014,the bond market began to appear the first batch of bond default events,and in the subsequent development,the occurrence of bond default events gradually increased.F Holding Company was founded in 1989,and was once a "giant" enterprise in the real estate industry.However,since the company decided to transform in 2014,the rapid development of the company’s financial business has gradually surpassed the proportion of its real estate business,and officially transformed into an enterprise in a diversified financial industry in 2020.Since the first bond default event of F Holding Company on July 9,2021,the bonds issued by F Holding Company have successively begun to default and the amount of liquidated damages is very large.Therefore,the bond default events of F Holding Company are sorted out and analyzed to explore the deep-seated reasons for its bond default.The in-depth reasons of bond default of F holding company are discussed and analyzed through macro,medium and micro levels.first,By analyzing the macro environment through China’s macroeconomic situation,social financing scale and regulatory mechanism,It was found that the occurrence of the bond default events of F Holding Company is related to the COVID-19 outbreak in 2020;next,Analyzing the industry prosperity and industry competition of the real estate industry and diversified financial industry in which F Holding Company is located,It was found that the bond default of F Holding company was related to the industry depression and the competitive pressure;once more,To analyze the internal factors of F holding Company,It was found that F Holding Company had problems such as lax risk control,too aggressive financial business expansion speed,large-scale self-financing and excessive limited assets.In addition,the financial analysis of F Holding found that the cause of default can be reflected in the changes of financial indicators,which further verified the accuracy of the cause of bond default analysis of F Holding Company.Finally,according to the reasons for the bond default of F Holding Company,such as reasonable repayment of remaining debts,steadily improving the company’s profitability and adopting strict risk control measures,we also provide useful reference for other bond issuing companies,regulators and investors.