In The Context Of Supply-side Reform A Case Study On The Market-oriented Debt-equity Swap Of Aluminum Corporation Of China

As China's economy enters a condition called "new normal",the rate of economic growth starts to slow down gradually.The way of relying on investment and debt to drive the rapid economic growth is no longer suitable for the development of enterprises.The excessive debt scale not only inhibits the operation and development ability of enterprises,but also brings huge challenges to the steady development of enterprises.In order to promote the supply-side reform and reduce the corporate debt ratio,the state council issued the guiding opinions on the debtto-equity swap of market-oriented Banks in October 2016,which initiated the market-oriented debt-to-equity swap in China.The market-oriented debt-to-equity swap takes the opportunity of reducing the debt burden of enterprises to inject internal impetus into economic development.Aluminum industry in China in the early through the bank loan to expand business scale,debt climbed quickly and at a higher level for a long time.As the leading enterprise of aluminum industry in our country,China's aluminum corporation has long been at the plight of high indebtedness,successfully implemented market-oriented debts into shares in 2017,reduced the asset-liability ratio,effectively helped enterprises out of trouble.This paper takes China's aluminum corporation as the example of research,hoping to provide reference for other enterprises that plan to implement market-oriented debt-to-equity swap under the background of supply-side reform.Firstly,the thesis makes the research background,research purpose and significance of the case clear,summarizes relevant materials of domestic and foreign supply-side reform and debtto-equity swap,and then defines relevant theories to provide theoretical basis for case analysis.Secondly,the thesis analyses the case of China's aluminum corporation implementing marketoriented debt-to-equity swap under the background of supply-side reform,and makes an indepth study on the movtivation and trading scheme of market-oriented debt-to-equity swap.Thirdly,the thesis uses the financial ratios contrastly analysing the changes of China's aluminum corporation.At the same time,this part analyzes the enterprise value before and after the implementation of the market-oriented debt-to-equity swap in combination with the enterprise's operating conditions,and then analyzes the management situation of the aluminum corporation of China after the implementation of the market-oriented debt-equity conversion.Finally,the paper draws some conclusions and some enlightenment from the process of the successful implementation of market debt-equity swap.Through comparative analysis of financial ratios,it was found that market-oriented debtto-equity swap enhanced the solvency,operation ability and profitability of enterprises.Through the calculation of enterprise value,it is found that the market debt-equity swap can enhance enterprise value and promote the sustainable and stable development of enterprises.Through the analysis of the situation of enterprise management and governance,it is found that the market debt-equity swap can help enterprises to get rid of the operating dilemma,improve the operating efficiency,improve corporate governance and deepen the reform of state-owned enterprises.Therefore,the implementation of market-oriented debt-equity swap is the next successful attempt under the background of supply-side reform,which can provide reference experience for other enterprises planning to conduct market-oriented debt-equity swap.