Case Analysis Of Chain Bond Default In Sichuan Coal Group

In China's bond market,due to the existence of invisible guarantee and rigid payment by the government,there has never been a substantial default of bonds before 2014.However,in recent years,with China's economy stepping into a new normal of "adjusting the structure and stable growth",under the background of macro-policy emphasizing "de-productivity" and "de-leverage",the economy is facing continuous downward pressure,and it is difficult for enterprises to follow-up financing.Credit risk in the bond market began to erupt,and bond defaults occurred frequently.In 2018,the default cases in China's bond market blowout growth,the amount and quantity of default has reached a record high.Normalization of default is the natural reaction of enterprise credit risk demonstration under market economy co nditions,and the sign of maturity of bond market.However,the concentrated outbreak of default tide has also led to the shrinkage of primary market issuance and the secondary market is sluggish,thus increasing the systemic risk of the market.Based on the above background,this paper takes the bond serial default of Sichuan Coal Group as an example,studies the bond credit risk and early warning,analyses the influencing factors of bond default,and puts forward suggestions on how to regulate the credit bond market environment.As the largest state-owned coal enterprise in Sichuan Province,after the default of "15 Sichuan Coal CP001" in June 2016,there were nine consecutive defaults of serial bonds in three years,which was the first state-owned enterprise in Sichuan Province to default on bonds.Firstly,this paper makes a comprehensive analysis of the causes and risk measurement of credit bond default,which lays a foundation for next study.Secondly,combining with specific cases,this paper deeply discusses the causes of serial default of Sichuan Coal Group's bonds from both external and internal perspectives,and uses Z-value model to analyze the financial health.Finally,based on the case conclusion,from the perspective of regulators,intermediaries and investors,this paper provides suggestions on how to prevent credit bond risks,regulate the credit bond market environment,and improve their ability of risk managementThe main conclusions are as follows: Firstly,the macroeconomic downturn,the unbalanced supply and demand in the industry and the deterioration of the financial situation of enterprises are all the important reasons for the default of bonds;Secondly,the invisible guarantee of the government affects the issuance and rating of state-owned enterprises,and the bond market should abandon the blind worship of state-owned enterprises and return to the normal credit style under the trend of broken rigid payment.Risk analysis;Finaly,market investors' ability to identify risks is insufficient,and the rating results of rating agencies are falsely high and lagging behind.