Case Study On Bond Default Of Founder Group Of Peking University

With the continuous promotion of economic restructuring policies such as "three deleveraging,one reduction and one supplement",the credit risks in the domestic bond market gradually began to be exposed,and we found that the subjects of default were transferring to the subjects of high credit rating.With the advancement of school-enterprise reform,problems such as interest encroachment caused by equity disputes continue to occur,which makes school-enterprise also go on the road of default.In this context,it is particularly important to analyze the default events of school-run enterprises with high credit rating.This paper selects Peking University Founder Group Co.,Ltd.,a school-run enterprise with high credit rating,as the research object,and selects the relevant financial data of Peking University Founder Group from 2015 to the third quarter of2019 as the main data source of this article.First of all,it briefly introduced the bond issuance of Peking University Founder Group and sorted out the timeline of a series of default events.In the case analysis section,the financial analysis method and the Basali model method are used to explore the reasons for bond default from both internal and external levels: the study found that internal governance issues caused by equity disputes,aggressive diversification development strategies,deteriorating financial situation and high liquidity risks are the root causes of corporate defaults,while external factors such as industry policy changes,tightening of refinancing environment,and distortion of credit rating results are the triggers for defaults.Based on the Basali model,the changes in the financial risks of Peking University Founder Group in recent years are explored and verified,and the problems of inflated and lagging rating results in China’s credit rating system are verified.Secondly,the impact of Peking University Founder bond default is analyzed from four aspects: related bonds,financial markets,school-enterprise beliefs and rating agencies.Finally,the default event of Peking University Founder Group was summarized and the corresponding enlightenment was drawn: the bond issuer should formulate a reasonable development strategy,pay attention to and prevent the risk of high debt financing,and strengthen the construction of internal control mechanism;Relevant regulatory entities shall strengthen supervision of the restructuring process of schools and enterprises,improve the credit rating system,and information disclosure systems;Investment entities should abandon the beliefs of schools and enterprises and high ratings,and improve their ability to identify risks.Through the study of the bond default event of Founder Group of Peking University,this paper can help enterprises improve their awareness of default risk prevention.As the first AAA school-run enterprise that defaulted in China,Founder Group of Peking University has strong typicality and representativeness,which can reveal the problems existing in school-run enterprises and credit rating system of China to a certain extent.