Rigid Payment,Credit Bond Default And Construction Of Prevention System

Since the advent of commercial paper in 2005 and the resumption of medium-term notes in 2008,China’s credit debt scale is rapidly expanding.Under the background of the breadth(issue industry,issuer,issue varieties)and the depth(issue threshold,issue conditions,debt leverage)of the bond market gradually improved,low-rated and unsecured bonds accounted for a significant increase,and the main credit qualification of bond issuers is significantly reduced.Since "11 Chaori Bond"became the first bond default in the public offering market in March 2014,bond default occurs from time to time.Early,sporadic bond default on the credit market impact is not obvious,and the vast majority of default bonds have been resolved.After the default of "12 Xiang-e.bond".in 2015,credit bond default,especially in public offering market occurs frequently,even continues to escalate,intensified.Up to now,corporate bonds,enterprise bonds,medium-term notes,private placement note,commercial paper,short-term commercial paper all have defaulted in China’s credit market.The nature of the issuer has also spread from the private enterprises to the central enterprises and local state-owned enterprises.Past sticky to the "public offering","state-owned enterprises" and "central enterprises" of all kinds of faith to choose bonds has no meaning,Rigid payment is broken at all levels of the bond market.National Development and Reform Commission,China Banking Regulatory Commission,China Securities Regulatory Commission,Stock Exchange and other regulatory agencies have strengthened the prevention of bond credit risk,and issued a series of policies to regulate credit bond financing behavior.But in the economic down cycle,the material breach of credit bonds did not stop,it showed a trend of intensive outbreak.The concentrated outbreak of credit bond default leads to the atrophic issue in primary market,the decline of trading enthusiasm in secondary market,the low rated credit bonds sustained pressure,the risk of bond default continued expansion and "new normal" appears in the band market.Dongbei Special Steel Group CO,.LTD as a special steel aircraft carrier born in the last round of integration of state-owned enterprises in North China,its product has the market,its equipment has the value,and its operating conditions are better than the most steel enterprises.It is such a provincial backbone enterprise with the market game and negotiation capital,that creates a history of local state-owned enterprises bond default and has defaulted 11 times continuously in a period of less than 13 months.Investors,underwriting institution,Dongbei Special Steel Group and Liaoning provincial government fall into a stalemate.From a global perspective,this uncovers facts that many high leverage state-owned enterprises are falling into the plight of debt and the rigid bubble is bursting.In this paper,by carding the credit bond default case of Dongbei Special Steel Group in detail,it reveals the deep-seated reasons of vicious default event of Dongbei Special Steel Group from the internal and external aspects,analyzes the fact that Dongbei Special Steel Group was forced into the bankruptcy reorganization procedure after default,and puts forward that the bond market of our country needs to exert the synergy of various subjects;build’ a multi-dimensional,multi-level and three-dimensional credit bond default prevention system from bond issuers,regulators,intermediaries and investors.