Research On The Causes Of Debt Default Of Private Enterprises In China

Since the March 2014 "11 Super Day Debt" substantial default,as of February 28,2019,China's credit bond market a total of 277 bond defaults,the amount of default amounts to 150.735 billion yuan,involving the issue of 117 main body.In the 2014-2016,the number of defaults in China's bond market gradually increased.In 2017,China's credit debt default volume declined briefly,indicating that China's bond market after 2014-2016 years of effective release of the risk of default,the risk of default in 2017 decreased.Bond defaults began to occur frequently in 2018,with the number and size of defaulting bonds at record highs.Entering the 2019,China's credit bond default is still showing a frequent trend.Judging from the nature of the subject of default over the years,private enterprises occupy the majority,while private enterprises default bonds and the total amount of bond defaults are also the highest.Why did bond defaults start to be frequent after 2018?Why do private enterprises occupy the majority in the subject of default?What are the causes of bond defaults?Based on the above problems,this paper uses case analysis to select the private enterprise Yongtai Energy Co.,Ltd.,which is typical of 2018 bond defaults,as a case study,from the current macroeconomic environment,The current situation of coal industry,corporate strategy and corporate financial situation,as well as stakeholder level analysis of the second half of 2018 bond default reasons.In the past,in the case study of private enterprise bond default,the paper analyzes the financial status of defaulting companies,mostly based on the longitudinal research of financial data of the case company's own years,and seldom compares the defaulting private enterprises with the state-owned enterprises in the same industry.As the only private listed company in the A-Share coal industry,this paper will also use comparative analysis method to compare the financial data of Yongtai energy with the remaining 25 listed state-owned enterprises in the coal industry,so as to further conclude that private enterprises are more prone to bond defaults than state-owned enterprises.Through the analysis and summary of the causes of the default of Yongtai energy bond,this paper draws the following enlightenment:first,the strategic development of private enterprises is not easy to be radical,should be rational,second,private enterprises should make reasonable investment,avoid blindly following the following;Third,private enterprises should establish financial risk early warning mechanism;Private enterprises should pay attention to the external macro environment and industry development;?,the stakeholders of private enterprises should assist them to reduce the risk of default.