Research On The Debt Problem Of China's Steel Industry From The Perspective Of Supply-side Structural Reform

With the decline of the iron and steel industry in our country and the increase of the leverage ratio,the debt repayment pressure of the iron and steel industry is gradually increasing,and the debt risk begins to accumulate.Since 2016,in order to promote the iron and steel industry supply side structural reform,the State Council issued the "State Council on the iron and steel industry to resolve overcapacity turnaround development" to give policy support for the development of iron and steel industry turnaround.The central bank,the CBRC,the national development and Reform Commission and other 8 ministries jointly issued "on the financial support of industrial structural adjustment steady growth and increase the efficiency of a number of opinions",to deal with problems of enterprise long-term losses,lack of solvency.And then resolutely reduce or quit the related business loans,to resolve the debt problems of the iron and steel industry to achieve.Based on this,this article takes the iron and steel industry debt problem as the starting point,and explores the current situation,the deep reason and the solution of the debt of the iron and iron and steel industry from the perspective of the structural reform of the supply side.Firstly,the analysis from the macroscopic perspective,the iron and steel industry is the key industry supply side structural reforms,and to "capacity" and "deleveraging"as the main task.Analysis from the point of view,the iron and steel industry has evolved from low profit loss situation.From the micro perspective,the Bohai Steel Group,China Steel Group,northeast special steel the group has a debt default phenomenon.The total amount of debt in the iron and steel industry continued to grow,a single source of debt,debt structure tends to short-term,the long-term development of the iron and steel industry and the stability of the financial system have had a negative impact.Secondly,this paper changes from the perspective of their own transformation of iron and steel industry and the external environment angle,respectively,to analyze the causes of debt problems in iron and steel industry.On the one hand,the analysis from the industry’s perspective,the soft budget constraint,the iron and steel enterprises irrational investment.The decline in the rate of return on investment in the iron and steel industry,weakening the solvency of iron and steel enterprises.The iron and steel industry supply side structural surplus,resulting in vicious competition between iron and steel enterprises.On the other hand,analysis of iron and iron and steel industry from the external environment,the formation of dislocation structure between the investment cycle and the production cycle of iron and steel industry investment in fixed assets formation,intensified the contradiction of debt problems in iron and iron and steel industry.Mismatch in the bank’s credit system has played a role in fueling the iron and steel industry’s debt.The local government has reduced the industry’s overcapacity debt fallback,the iron and steel industry to increase the difficulty of financing,improve the financing cost of the iron and steel industry.Furthermore,the analysis of principal component method was used to evaluate the debt repayment ability of the steel industry.This paper selects the listed steel enterprises and the Northeast Special Steel Group,which has already defaulted on debt,as a sample,and through the comparison of the solvency,it demonstrates the problems of the debt repayment ability of the steel industry in 2015.Finally,according to the empirical results,this paper makes a detailed induction and classification of the supply side structural reform in the solution of the debt problem of the steel industry.In the short term,we should insist on the implementation of differentiated credit policy,encourage the debt restructuring of steel enterprises,broaden the financing channels and improve the withdrawal mechanism of iron and steel enterprises.In the long-term approach to the iron and steel industry production capacity to achieve long-term regulation,adjust and optimize the industrial structure of the iron and steel industry and guide the implementation of mergers and acquisitions within the industry.Based on the above research,this paper puts forward some policy suggestions.