Case Study On The Bond Default Of Kangde Xin

At the beginning of the development of China's bond market,the phenomenon of rigid redemption did indeed prevail.Before 2014,there had never been a substantial bond default event.Affected by the 2008 financial crisis,in recent years,both the global economy and the fast-growing Chinese economy are at a low-speed development stage,and the downward pressure on the economy is very large.The potential credit risk of China's bond market is gradually showing,and bond default events are frequent.occur.According to statistics from the Wind database,as of December 31,2019,a total of 159 bonds in China had defaulted during the year,with a total default of 125.7 billion yuan,of which the default amount in the second half of the year was 73.6 billion yuan.Compared with the first half,An increase of 13.3 billion yuan.This article uses Kangdexin Composite Materials Group Co.,Ltd.as a case.The "18 Kangdexin SCP001" ultra-short-term financing bond issued by it could not pay the principal and interest on schedule on January 15,2019,and a debt default occurred..This article hopes that through a comprehensive analysis of the reasons for the default of Kangde's new bonds,corresponding suggestions and countermeasures will be drawn.This article consists of four parts.The first part is the introduction of the full text.The second part is the overview of Kangdexin's bond defaults.First,it introduced Kangdexin's company profile,equity structure and business overview,and then introduced Kangde's new bond issuance,default process,subsequent disposal and its impact on the company in detail.The third part is the analysis of the causes of the default of Kangde New Bonds.Based on the publicly disclosed data and annual reports of the company,the specific causes of the bond defaults are analyzed from the industry level,company level,financial status and macro environment..The fourth part is conclusions and recommendations.According to the causes of analysis in the previous chapter,corresponding suggestions and countermeasures are put forward.