Study On The Operation Process Of Debt Default And Risk Contagion In Shenwu Group

During 2014-2019,the default events of Chinese enterprises' debts occurred frequently,involving tens of billions of RMB.Many debt defaults occur in listed enterprise groups.For some listed enterprise groups,due to their larger size,wider business areas and more industries,the production and operation of enterprise groups need more capital to operate than a single enterprise,which directly leads to more complex risks that enterprise groups need to bear when facing debt defaults than a single enterprise How complex it is.Once there is a debt default in a large enterprise group,the negative impact will be even greater,especially when the risk comes from a subsidiary with weak economic strength.Once there is a debt default,it may further infect other companies at the same level or even the parent company.High standard supervision and management is the development trend of enterprises in the future,and it is also the urgent need of the government to change.Enterprises need to find out the essential factors through a certain system,and take corresponding measures according to the actual situation.The existing researches on the contagion of debt default risk of enterprise groups mainly focus on the large state-owned enterprise groups,while the researches on some emerging listed enterprise groups are too few.Therefore,based on the analysis of the influencing factors and risk contagion process of enterprise group's debt default risk,this paper makes a more accurate evaluation of enterprise group's debt default risk,finds out the essential problems in the process of risk occurrence,makes corresponding improvement measures according to the actual situation of the company,improves the existing production and operation mode,and avoids the occurrence of debt default risk prevention and control.This paper expounds the theoretical basis of this paper from three aspects: financial distress theory,domino effect theory of risk contagion and risk barrier theory.This paper takes the disclosure of debt default of Shenwu group from 2016 to 2019 as the main case,studies and analyzes the whole process of debt default based on the company information that Shenwu group has already disclosed and the evaluation of some financial institutions,and further analyzes the deep-seated internal causes.Sort out the contagion process of debt default risk of listed group enterprises,identify the key nodes of contagion,and finally draw a conclusion.And according to the key nodes in the process of risk contagion operation,the risk contagion prevention and control measures are put forward.