Corporate Bond Credit Risk Control Research Focused On The Internal Control Angle

In 2014, China’s corporate bond has surpassed the United States in the global corporate bond issuance topped the list. Since the 2005,issued of the short-term financing bonds by the government,China’s bond market got to the prosperity stage, the bonds are diverse, corporate bonds are also expanding the scale, the exchange rate has been steadily rising, and more and more investors began to pay more attention to the bond market. However, China’s bond market is not mature enough, a lot of market mechanism and credit risk control is not perfect, the bond market in China is also facing the credit level that began to decline, credit risk is increasing.These years, the development of corporate bond has become an integral part of the backbone of China’s bond market, especially in the beginning of the 2015. Issuance of corporate bonds market will be expanded to all the corporate legal system. However, compared with the rapid expansion of the scale of corporate bond market, China’s listing Corporation on the bond credit risk management ability is relatively backward, which lead directly to the corporate bond market default risk increased sharply. The default is chained, scaled, and harmful, so we must pay more attention to credit risk management of corporate bonds.Due to the chaori solar bond default is the first default of public offering bonds, so in this paper, using the chaori sola bond default as a case study, the author take the method of combining theory with practice, using the theory of internal control to link the chaori solar bond default case. First, through the analysis of the internal control environment of chao ri, find that chaori company’s risk control consciousness is weak, the company’s management and supervision layer on the operation of the company issues do not work well. Secondly, the company is without full recognition of credit risk, including the risk of overall macroeconomic situation and the industry, the analysis of financial risk, and the risk of corporate strategic choice. Finally, control measures of the bond credit risk fail, including loss of control failure, the failure of risk transfer, and risk retention is not guaranteed. the author find that the internal control of chaori solar bonds do not work, which leads to the bond defaults, and combining with the case, the author put forward to perfect the internal control construction of other companies who will issue corporate bonds to avoid the credit risk of corporate bonds.