Zhuhai Zhongfu's Bond Default Case Studies

China's bond market has been recovering since the 1980 s.With the strong support of the country,the bond market has developed rapidly.However,due to the "rigid payment" feature in China's bond market,it has led to a long period of time There has been no substantial default in the bond market.It was not until the "11Super Japanese Debt" default in 2014 that China's bond investors were truly exposed to the risk of bond default.With the expansion of the bond stock market and the accumulation of bond default risks,bond default events have erupted in recent years.According to Wind information statistics,as of the end of 2018,the bond market had a total of 205 default bonds,with a default amount of 174.3 billion.104 bond issuers.The frequent occurrence of bond default events,the "rigid payment" is broken,which has many adverse effects on the operation of the enterprise,has a negative effect on the development of the bond market,and even affects the stability of the society,so the default gradually entered the background of normalization Next,the research on credit style is extremely urgent.This article selects China's first Zhuhai Zhongfu Company that successfully resolves bond defaults on its own as the main body of the case,and conducts a study on its two bonds "12 Zhongfu 01" and "12 Zhuzhongfu MTN1" that have consecutively defaulted.By analyzing the causes of bond defaults,exploring the corporate governance,operating policies,financing strategies and default handling mechanisms of the defaulting parties,looking for deeper causes of bond defaults,trying to study corporate bonds through the default characteristics and default handling methods of Zhuhai Zhongfu The common problems of market defaults eventually lead to revelations for companies,investors,and bond market regulators.The specific research ideas are as follows: First,the two bond default events of Zhuhai Zhongfu were introduced,and further analysis of the impact of bond defaults on the development of the enterprise: including reduced profitability,increased financial risk,increased corporate financing costs,and company Unfavorable stock price shocks.Secondly,from the aspects of corporate management,corporate governance,industry level,bond market and credit rating,the causes of Zhuhai Zhongfu's bond defaults were studied.1.Oversupply in the industry,inadequate bond market development,and insufficient credit rating early warning.Analyze again from the aspect of default settlement mechanism,combining with the default settlementmechanism of the issuer in China's debt market and Zhuhai Zhongfu's own default settlement method,put forward measures to prevent bond default risk and debt risk delay.Finally,according to the reasons for bond defaults,the debtors should improve management stability,optimize debt maturity allocation,expand the company's external financing channels,accelerate company transformation,bond market should strengthen supervision,and investors should enhance risk identification capabilities.Inspiration.I hope it can provide some reference for promoting the healthy development of China's bond market,improving the overall risk awareness of enterprises and investors,and improving the bond market system.