The Deep Analysis And Enlightenment Of The Case Of Jiangxi Saiwei Bankruptcy

At the end of 2015,the Central Economic Work Conference clearly stated that the first task in 2016 was structural reform on the supply side,and the core was “decapacity”.The background of the concept of “decapacity removal” was the situation in which excess capacity occurred in many industries in China.After analyzing the causes of overcapacity in certain industries,we have found that the government's "tangible hand" has been strongly involved.Because China's industrial development has a clear policy orientation,in the early stage of the industry's development,the strong support of the national industrial policy will enable new industries to flourish.In some cases,when the state formulates industrial support policies,it often neglects the objective laws of economic development and supports them with contrarian conditions,causing problems of excess production capacity.Among the many industries with overcapacity,the photovoltaic industry's problems are particularly prominent.The photovoltaic industry was once expected to become a pillar industry in China.However,under the background of the financial crisis and changes in demand from major demand countries,China's industrial policies continue to support it,leading to overcapacity in the photovoltaic industry.In the photovoltaic industry,the “photovoltaic miracle” LDK is a very typical case.At the beginning of the establishment of LDK,the government provided loans and land for the LDK.In the normal course of LDK's business operations,the government coordinated financial institutions and provided financial support.After LDK's financial crisis erupted,the government incorporated its debt into its budget,established a stabilization fund,and coordinated financial institutions to ease its debt pressure.However,many government initiatives are still difficult to salvage the LDK financial crisis,and then the fate of bankruptcy restructuring.This can not help but make us wonder: Why does the private company LDK make the government so supportive and help? Why is it still difficult to prevent LDK from bankruptcy and reorganization when the government is so strongly aided? After investigating the causes of LDK's financial crisis,it was found that LDK's outburst of financial crisis was not only caused by a certain cause,but was caused by external factors of the photovoltaic industry and internal operating factors of the company.Therefore,the government has neglected the external factors of the industry and the internal factors of the company to blindly rescue the company,and the effect achieved is also not satisfactory.This article takes the LDK case as the core.First of all,it analyzes Jiangxi Province,Xinyu City,and LDK,explaining that the government has realistic factors for LDK support and assistance.Secondly,through the analysis of the industry and the analysis of the LDK's operating conditions,it was concluded that the LDK outbreak financial crisis was caused by the external factors of the industry and internal factors of the company.Finally,the introduction of financial early-warning models led to LDK's financial early-warning results,and proposed an early-warning system that combines industry analysis and financial early-warning models to provide a scientific basis for avoiding “brain-style” decision methods..