| Since 2014,the rigid payment in bond market has been broken,there have been a large number of debt default phenomena in our bond market.The bond market has been rocked by frequent defaults.In October 2016,the Central Economic Commission proposed that "homeowners should not stir",and the real estate industry would be restricted in financing,operation and sales.In 2020,the COVID-19 pandemic had a significant impact on the subject and number of bond defaults,with the amount of bond defaults reaching 142.259 billion yuan.In 2021,the amount of bond default is146.497 billion yuan,and the default finance is high.It indicates that our bond market and bond default management still need to strengthen.Therefore,it is necessary to study the causes of bond default.In 2021,the "three red lines" began to be fully implemented.Coupled with the macroeconomic downturn caused by the COVID-19 pandemic,a large number of real estate enterprises suffered from tight capital flow and could not pay the principal and interest at maturity,resulting in substantial bond defaults,which led to a climax of bond defaults of real estate enterprises.Based on the above background,this paper selects Sichuan Blu-ray Development Co.,Ltd.as a case study,in-depth analysis of the causes of bond default,hoping to provide Chinese real estate enterprises with suggestions and enlightenment to prevent bond default.Four research methods are used in this paper.It is supported by information asymmetry theory,financial dilemma theory,capital structure theory and credit risk theory.First,introduce the case company from its operating and financial status.Summarize the bond default event and subsequent treatment;Analyze the impact of a bond default.Secondly,the causes of bond default are analyzed from the aspects of external factors and internal factors,and the external factors of the company are mainly from the perspectives of macroeconomic factors and industrial factors.Through the analysis of the company’s investment strategy,capital structure,financial condition and corporate governance,it is concluded that the internal causes of the company can be divided into: occupying funds through aggressive expansion,consuming funds through rapid development,frequent management changes,unreasonable capital structure,high proportion of restricted funds and deteriorating financial condition.Combined with Z-score model to estimate the financial risk level of the company.Finally,based on the analysis of the causes of bond default,three suggestions are put forward from the perspective of investors: enhance their own risk identification ability,continue to pay attention to the change of enterprise information,and use the early warning model to predict the risk.From the point of view of the regulator,it puts forward two suggestions: improving the information disclosure system,unifying the rating and strengthening the supervision;This paper puts forward some suggestions on developing reasonable management strategy and improving enterprise management level for the case company. |
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