Research On Bond Default Of Dongbei Special Steel

After years of exploration and development,the bond market in our country has played an increasingly important role in the capital market.Bond financing has also played an increasingly important role in China's infrastructure construction.Compared with other direct financing instruments,bond financing has the advantages of lower financing costs and shorter financing time.As a result,the bond market in China has developed rapidly,and both the issuing market and the circulation market have witnessed great prosperity.While the rapid development of China's bond market is accompanied by a slowdown in China's economic growth,the increase in downward pressure on the economy has led to the exposure of the risks in China's bond market.In 2014,the country's bond market witnessed the first case of real default in public offering bonds,which also broke the myth of the “zero” default in the original bond market in China.Since then,it has also opened the prelude to bond defaults.With the standardization of supervision,the economic structure With regard to the transformation of the economy and financial de-leveraging,the rate of default on bonds has also gradually increased.In the second half of 2015 and the first half of 2016,it was the peak period of the outbreak of debt defaults in China.Since 2014,China's bond default events have shown an increasing trend year by year.The risk of credit bond investment has risen sharply.In 2016,the number and scale of default bonds have reached the maximum value in recent years,and the main body of breach of contract has also expanded from private enterprises to state-owned enterprises.On March 28,2016,Dongbei Special Steel Group Co.,Ltd.issued an announcement announcing that “15 Dongte Steel CP001” constituted a material breach of contract.From March 2016 to January 2017,a total of 10 bonds,involving a total amount of 7.17 billion yuan in principal.The case of default of Dongbei Special Steel Group Co.caused an uproar in the Chinese bond market.Dongbei Special Steel spent more than one year before and after the bankruptcy reorganization.At the beginning of 2018,it finally entered the final stage.The reform program was successfully implemented.The default bankruptcy reform program of Dongbei Special Steel Group was also the first local state-owned enterprise to breach the contract.In the case of bankruptcy and reorganization,the typical case of Dongbei Special Steel's debt reorganization case also provides reference for future disposal of bond defaults.This article reviews the default process and reorganization follow-up of Dongbei Special Steel Group.First,we conducted an environmental analysis of the violation of Dongbei Special Steel from three aspects of the macroeconomic environment,the development environment of China's bond market,and the development environment of China's steel industry,and then from the industry,the company,and the three levels of rating agencies analyzed the deep-seated reasons for the default of the northeast special steel bonds,and then analyzed the impact of the breach and the rationality of the default disposal methods.Finally,the industry,company,rating,Institutional regulatory and investor inspiration were derived from the case of default of the bonds.This paper analyzes the reasons for the default of many bonds in Dongbei Special Steel Co.,Ltd.,discusses the impact of the breach and the rationality of the final default treatment plan.It has certain theory and reality about how to effectively prevent the credit risk of China's bond market and related issues of bond default treatment.