A Study On Bond Default Of Listed Companies

Since the reform and opening up,China's bond market has experienced more than 30 years of ups and downs.Although the development is maturing,compared with the foreign bond market,the development is still not mature enough.Because China's bond market has been protected by rigid redemption and implicit guarantees,there has been no bond default.It was not until the material breach of the "11 Super Day Debt" incident in 2014 that the rigid umbrella was broken,and bond defaults gradually entered China's capital market.In 2018,China's bond defaults were the largest,involving the largest amount of the year,the default rate has reached 0.95%,and the bond default in 2019 is also on the rise.Therefore,so far,bond default is still a hot issue in China's capital market.So,what caused the default of the listed company's bonds? Is it a change in the external macro environment or a problem in the internal governance of the company? If bond issuers,regulators,and investors make precautionary measures in advance,will bond default rates drop? Based on risk management theory and trade-off theory,this paper introduces the characteristics of corporate bonds,the characteristics of bond default risk and the impact of default,and constructs an analytical framework for bond defaults.It also conducts the status quo of bond issuance and bond default in China's listed companies.Analysis;Secondly,this paper introduces the event of Jinhong Holdings bond default as the research object.Through the deep analysis of the case and the current situation of the bond market,the conclusion of this paper is drawn.The research in this paper has two main purposes,one is to explore the cause of default of Jinhong Holdings Bond,and the other is to explore countermeasures and suggestions for corporate bond default.It is hoped that through the research of this paper,combined with the default case of Jinhong Holding Bond and the default status of China's bond market,it can propose some countermeasures against bond defaults for these stakeholders based on the perspectives of bond issuers,bond investors and bond regulatory authorities,and suggestions.For example,bond issuers should formulate a reasonable financial strategy,strengthen the company's internal environment,improve corporate governance mechanisms to prevent bond defaults;bond investors should establish a correct risk prevention awareness,do not put eggs in a basket,do Good portfolio investment,and strengthen the follow-up management of investment;the bond supervision department should improve the information disclosure system and the issuance of binding clauses,strictly control the bond default risk from the source,and increase the analysis and sharing channels of bond default.I hope that these suggestions can be used as a reference for promoting the healthy development of China's bond market,raising the risk awareness of the bond market,and improving the institutional system of the bond market.