Research On The Debt Risk Management Of Highway Industry

Since the1990s Chinese road construction has been developed rapidly, it plays animportant part in promoting our economic development, strengthening regional ties andimproving people’s living standards. However, with the increasing of the road, many newproblems appear, the main problem is that the road construction is mainly dependent on thefunds and at the same time the vast majority of the debt comes from the bank loans.Especially with the repayment peak comes in the last two years, its debt risk becomes thickerand thicker. According to these problems, how to strengthen the debt risk management,predict and avoid the risk of the debt is an important guarantee for the development ofChinese highways.Firstly the article presented some statics of the road construction, from which we can getthe road’s financing status. Secondly the paper analyzed the type of the debt risk and the riskmanagement theory. Thirdly we chose one listed companies as the analysis samples, usedsome method to conduct a comprehensive evaluation of its debt risk and got the main factorsfor the debt risk, and provided the reference for developing debt risk prevention strategies.Finally, based on the introduction about the debt risk, we proposed some positive measuresfor predicting and preventing the debt risk of the road.