| Since the rigid bond payment was broken in 2014,Chinese bond default events occurred frequently,especially in the real estate industry,and the scale of default is expanding year by year.The normalization of defaults of real estate enterprises damages the interests of relevant investors and causes a huge blow to the real estate market and bond market,which forces relevant subjects to find out the root cause of problems and improve the ability to prevent default risks.On February 27,2021,"17Happiness Foundation MTN001" was due to trigger the cross-default clause,and the enterprise was unable to repay,resulting in the bond default.All of a sudden,hundreds of billions of housing enterprises China happiness burst thunder news caused widespread concern in the society.In view of the above phenomenon,this article can not help but raising the following questions: why is the real estate enterprise bond default high incidence area? Why does China Fortune Happiness default on its bonds? How should real estate enterprises effectively prevent bond default?Existing researches on the causes of bond default of real estate enterprises are mostly analyzed from the macro,meso and micro levels,and few literatures start from a specific perspective and string together the main causes of default.Throughout our country’s default housing enterprises,most have experienced radical strategy of development stage before default.The companies’ investment and financing behavior in this stage are more or less hidden risks for the future default.Based on this,this paper takes strategic radicalism as the entry point,takes China Fortune Happiness as the case company,and studies the causes and countermeasures of bond default of housing enterprises from the economic consequences of enterprise investment and financing--investment efficiency and financing structure.Based on the financial distress theory,capital structure theory and broken windows theory,this paper firstly introduces the general situation of the development of the real estate industry,the current situation of financing and default,which lays the foundation for the following analysis.Then,it specifically introduces the basic information and default overview of China Fortune Land Happiness Co.,LTD.The basic information mainly includes the development process of the company,the characteristic PPP business model of the new industrial town and the investment of Ping An of China.The default overview mainly includes the situation of the company’s bonds,default history and default consequences.Then,the quantitative evaluation of the radical degree of China Fortune Happiness strategy,under the premise of determining its implementation is offensive strategy,respectively from the low investment efficiency,financing structure is not reasonable two path analysis.The low investment efficiency is embodied in three aspects: wrong investment decision-making--overestimating the situation in Beijing,excessive investment pace--undertaking too many projects,too long investment cycle--slow turnover of receivables.The unreasonable financing structure is mainly reflected in two aspects:obvious dependence of source structure--excessive dependence on debt,mismatching of maturity structure--long use of short debt.In addition,this paper also analyzes the company’s aggressive strategy at the same time faced with the external environment,which is the "catalyst" of China Fortune Happiness bond default;Finally,according to the above causes,put forward countermeasures: improve the decision-making process,formulate analysis strategy;Improve the PPP model and try to avoid risks;Strengthen operation and management to improve profitability;Control the scale of debt,advance financing planning.It is hoped that this study can provide reference for real estate enterprises facing similar difficulties and promote the long-term healthy development of our bond market. |
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