The Case Study Of Contract-violating In "ChaoRi's Debt"-The Research In Risky Controlling Of Credibility Of Corporate Bonds

Shares and bonds as main means of various financing channels have been spreading to a larger extent with the growing perfection of the system of capital market in China.But the truth is that the methods of finance in most industries and enterprises in China have derived from the certain loan of commercial banks at present,since the advancement of market of bonds has been relatively under the expectation of the public and the authorities as well as the scale of market of bonds has just accounted for two percent in the capital market,comparatively the bond of commercial banks constituting a considerable proportion within the capital market.By the end of the year of 2017,“indirect finance” of commercial banks' credit and “shadow banks” had climbed to the percentage of ninety in whole capital setting.So the market of commercial banks has beard more risks and dangers than the market of bonds has,which also has posed a severe threat to the comprehensive development of financing market in China.Corporate bonds,the vital sources of exterior financing to a corporation,have generally been supported by the government through funding and sponsoring currently because they not only refresh the patterns of vehicles of financing investment,but lower the potential risks in the financing market to certain extent,which may be likely to optimize the capital's structure of enterprises,thus an increasing number of financing investors have preferred to select them as their own option of evasion of potential dangers.However,the protective system onwards creditors have not been quite integral owing to the underdeveloped of whole structure and its timing.In 2014,the incident of treaty-violating,“11 ChaoRi Debt”,happened in ChaoRi Solar Energy Science&Technology Co,Ltd in Shanghai became the first incident of breaking the contract in the market of corporate bonds in China,which brought a compelling quake to the financing market,so banking workers and financing investors have scrutinized the entire protection for creditors and have paid more rational attention to risky manipulation of corporate bonds.Enterprises have intended to gain more developmental opportunities and earn more capitals for spreading their business through accessing to the stock market,which has been most private sector's ultimate purpose.Currently,the number of listed corporations has already reached considerably to a massive scale,so they have gradually played an irreplaceable part in the China's national economy.Nevertheless,the transaction in the stock market has not only brought golden opportunities,but some potential dangers in the meanwhile.Given those private sectors cannot deal with properly risks once they occur,these risks may either hit overwhelmingly to themselves or pose an adverse threat to social stability and national economy respectively.Hence,it will be more necessarily significant to analyse how to prevent the risks brought by listed corporations when they plan to finance funds so as to boom their own instead of suffering from unexpected dangers,even the occurrence of bankruptcy.Admittedly,relevant documents regarding controlling the risk of bond financing almost have studied how to prevent listed corporations from causing risks by the angle of macro market.While there have not been any references or documents indicating risks in bailout of bonds,it even does not mention to the concrete precautionary measures to do so.This essay will illustrate causes and theoretical foundations to the risks of bond financing by the angle of Micro Corporate Management,making up existing research to a certain extent,which is essential for the expansion of relevant theory.Meanwhile,this essay initially recount relevant definitions of violating the treaty of debt among corporations and some documents of risky controlling.Then,the structural setting of market of corporate bonds will be analyzed appropriately and its developmental conditions will also be summarized reasonably.Lastly,employing the scientific mixture of practices plus theories and exemplifying “11 ChaoRi Debt” for the basis,I would perform a professional analysis toward potential problems brought about by listed corporations preceding and after they tend to release bonds and make an efficient discussion about how enterprises could manage effectively the potential risks and dangers in the course of releasing bonds.