Case Analysis Of Private Bonds Issued By Company ZX

For a long time,Direct financing in China is lagging behind the needs of capital of the real economy,corporate bonds develop slowly,and the mature market has not been formed.In addition,Issuing and trading system of corporate bond is not sound,bond products are not rich,so unlisted companies hesitate when it comes to issuing bonds.Since the year of 2008 when financial crisis occur,small and medium enterprises raise capital hardly,a kind of new financial tool develops which is available to small and medium enterprises.Private bonds have many advantages,for example,distribution method is convenient,approval cycle is short,use of funds is relatively flexible and so on.It have greatly solved the financing difficulties of small and medium-sized enterprises,and made the small and medium-sized enterprise financing service system completed.In 2012,Shanghai Stock Exchange and Shenzhen Stock Exchange promulgated decree,Private bonds,a new type of corporate bonds,boomed in China's capital market.Credit rating of private bonds is low,the risk is high,so private bonds are known as the "junk bonds.In 2015,the new regulations released,non-listed companies have more bond financing channels.Although private bonds in China do not last long,unlisted small and medium enterprises prefer to issuing private bonds because of its many advantages.In the corporate bond market,many private bonds are issued,some experience and lessons are accumulated.This paper combines theory and practice,takes the first private bond in K as an example,the author analyzes several important aspects in the process of issuing bonds,including the choice of coupon price,the way of sale,the timing of issuance,risk prevention and control,etc.Non-listed companies in the same industry,which have the same financial structure,can use this example as reference.The author read many bibliography of the western countries,which is relevant to private bond issuance system,and has deep impression in the relevant domestic policies of private bonds.The author concluded the status of private bond issuance,compared private bond with other financing ways,thought that domestic private bonds have many shortcomings in the system,operation and the regulation.The successful example of private bonds issued by ZX company give us some enlightenment.(1)Issuing private bonds is an effective financing channel for non-listed companies;(2)Indirect holdings can expand the scope of investors;(3)Effective measures should be taken to increase credit(4)The issuer should choose the appropriate timing of issuance and coupon rate;(5)Enterprises should strengthen the private equity business innovation,improve their own risk awareness.