Research On The Case Of Bond Default Of Kangdexin Composite Material Group

As a market for buying and selling bonds,the bond market is an important part of the financial market.In recent years,with the gradual slowdown of economic growth,the tightening of monetary policies,and the tightening of financial market supervision,changes in the bond market environment have restricted corporate financing,and the occurrence of defaults in China's bond market has become more frequent.In 2019,a total of 153 bonds in the inter-bank market and exchanges experienced substantial defaults.The principal size of the defaulted bonds reached118.564 billion yuan,of which 39 issuers defaulted on the bond market for the first time.In the bond defaults in recent years,private enterprises are the hardest hit by bond defaults.Kangdexin Composite Material Group is a strong private enterprise and an industry leader in the segment of optical film.The external macroeconomic situation is down,internal corporate governance and expansion strategies are flawed,and the company's financial risks are relatively large.Under the influence of many other factors,bond defaults eventually occurred.The four bonds issued in 2017 and 2018 constituted a substantial default,which caused a huge impact on the company's normal operation and reputation.KDX's bond defaults case study delves into the main causes of its bond defaults,and formed corresponding enlightenment and suggestions.The factors that caused KDX's bond to default include macroeconomic factors,external institutional factors,corporate governance and internal control factors,company development strategy factors,and company financial risk factors,of which financial risk is divided into asset and liability quality,cash flow,and solvency,Profitability and operational capabilities are analyzed in six aspects.The internal and external reasons for the bond default of KDX are obtained: the internal reason is KDX's wrong development strategy,financial fraud caused by the abuse of power by the actual controller and poor short-term solvency;the external reason is the macroeconomic Downside,lackof prudence of external institutions such as audit institutions.Based on the above analysis of the causes of KDX's bond defaults,combined with the current situation of China's bond market,countermeasures and suggestions are put forward to prevent such bond defaults from occurring again.It is hoped that the analysis of KDX's bond defaults cases will enable private listed companies to gain some inspiration in development strategies,corporate governance and financial management.At the same time,it also hopes that third-party institutions and regulatory bodies in the bond market can make up for their deficiencies and jointly promote the healthy and orderly development of China's bond market.