Analysis Of The Causes And Countermeasures Of Bond Default Of Shenwu Environmental Protection Technology Co.,Ltd.

Previously,China’s bond market had an unwritten rule of "rigid payment",which reduced the default risk of the bond market and made China’s bond industry develop stably.However,in order to comply with the development of the market economy,the bond market to mature development path,it is necessary to pull away from the government "visible hand" so as to break the rigid payment situation.In 2014,the emergence of the first substantial default bond in China’s bond market broke the myth of "zero risk" in the bond market.Subsequently,China’s bond market credit risk rapidly increased,the bond market "default wave." Therefore,what are the specific reasons for the occurrence of bond default,and how enterprises should face this crisis,is worthy of attention and thinking.This paper selected Shenwu Environmental Technology Co.,Ltd as the analysis case,based on the relevant theoretical basis of financial crisis,to discuss and analyze the causes of bond default of the case company,and put forward corresponding Suggestions and enlightenment according to the analysis results.Through analysis,this paper finds that: firstly,under the situation of poor macroeconomic environment and imperfect supervision system of bond market,credit risk of China’s bond market is relatively high;Secondly,shenwu environmental protection in the operation,investment and financing errors,leading to the company’s debt crisis concentrated outbreak,the specific performance is: take up a lot of money accounts receivable recovery difficulties,resulting in enterprise capital turnover problems;Due to the large scale of short-term financing,the company failed to properly arrange the debt maturity structure,and the long-term and short-term debts were concentrated and matured,leading to great debt repayment pressure and debt crisis.Investors lost confidence because of the sharp drop in the company’s stock price,and the company fell into the financing difficult situation.Therefore,this paper analyzes and puts forward the corresponding Suggestions: strengthening the management of accounts receivable,optimizing the ownership structure,improving the sensitivity to the economic environment,and properly dealing with the follow-up matters of breach of contract.