Research On The Implementation Effect Of Market-Based Debt-for-Equity Swap Conversion Of Private Enterprises In China

In the late 1990 s,the non-performing asset ratio of the four major state-owned Banks remained high,which seriously affected the development of social economy.To this end,the state has set up four major asset management companies to undertake and dispose of the non-performing assets of the four major state-owned Banks,creating conditions for the transformation and listing of state-owned commercial Banks.But in recent years,with the adjustment and upgrading of economic structure,enterprises are facing the pressure of transformation,while the asset-liability ratio is also rising.The excessive growth of the debt scale has made the debts of enterprises continuously increase and the difficulties of enterprises’ operation become more serious.To some extent,it has led to the rise of debt risks and the emergence of a debt crisis.The emergence of market-oriented debt-for-equity swap can temporarily help high-quality enterprises with difficulties but great development potential,reduce the leverage ratio of high-quality enterprises and accelerate the disposal of Banks’ non-performing assets.Market-oriented debt-for-equity swap is an important policy aimed at reducing corporate leverage ratio and preventing financial risks.Since the launch of market-oriented debt-for-equity swap in China,nangang stock is the first market-oriented debt-for-equity swap case of listed private enterprises.This paper takes the typical case of market-oriented debt-for-equity swap of nangang steel group co.,ltd.as the research object,and analyzes the operation process of market-oriented debt-for-equity swap of nangang steel group co.,ltd.from the perspective of the operation process and implementation effect.In terms of the operation conditions of debt-for-equity swap,it is concluded from a multi-dimensional perspective that only with the promotion of favorable policies,the full support of financial institutions and the opportunity provided by the exceptional provisions of the banking law can the market-oriented debt-for-equity swap of nangang group be carried out smoothly.In terms of the implementation process,the whole process of the market-oriented debt-for-equity swap of nangang is analyzed in detail.In terms of the effect of debt-for-equity swap,the financial index method is used to evaluate the effect of debt-for-equity swap from the perspectives of leverage reduction,debt paying ability and capital structure.The analysis shows that the market-oriented debt-for-equity swap has certain positive significance for both parties,and can help the enterprises to reduce the economic leverage ratio in the short term,but in the long term,the market-oriented debt-for-equity swap can promote the reform of the enterprises and facilitate the transformation and upgrading of the enterprises.