Generation And Prevention Of Default Risk

In recent years,China's economy is undergoing changes from high growth rate to high quality development.China has maintained a high economic growth rate since 2008,and China's total GDP is also increasing year by year,reaching 90030.95 billion yuan in2018.China's economic growth rate is obvious from the GDP data,but the quality of the economy has not kept up with the pace of development.In order to improve the quality of economic development,China has issued relevant macro policies," three go,one health,one supplement " was put forward at the Central Economic work Conference.Policy changes have accelerated Chinese production the transformation of the industry.In the macroeconomic changes,many enterprises have some unsuitable phenomena,such as: bond default.This paper takes the "16 environmental bond " issued by Shenwu Environmental Protection as an example to analyze the emergence of bond default,and puts forward some constructive suggestions to avoid the risk of bond default.Shenwu Environmental Protection is an environmental protection engineering company listed on the gem,the company's main business is to sell environmental protection equipment and carry out environmental protection services.Under the background of developing high quality economy,the development potential of environmental protection industry should be great,but the "16 environmental bond" issued by Shenwu Environmental Protection Company has appeared the phenomenon of bond default,which is also the first bond default in the emerging industry such as environmental protection industry.Bond default is caused by many factors,the purpose of this study is to explore some ways to prevent and resolve the risk through the study of bond default events of Shenwu Environmental Protection Company.This paper will make a detailed analysis of Shenwu environmental protection bond default events through case analysis,introduce the cause of Shenwu environmental protection bond default events,occurrence process and Shenwu environmental protection response means,and explore how to prevent bond default methods.The analysis process of this paper is mainly divided into three levels,one is the macroeconomic level,the other is the industry level,and the third is the Shenwu environmental protection company level.At the macroeconomic level,it'smainly from labor costs The impact of leverage on the economic environment,deproductivity led to the reduction of downstream customers and the capital market downturn,financing is more difficult to analyze these aspects.Industry level mainly from the industry internal factors and non-economic factors to analyze.The analysis of internal factors mainly from the company's related party transactions,financial situation,business development model limitations and so on.Try to find out the reasons for bond defaults.According to the order from big to small,this paper will put forward some suggestions on the prevention and resolution of bond default risk from macro policy,environmental protection industry and environmental protection enterprises.In the case study,we found that the bond default incident occurred not only because of one factor,but by a combination of factors.The development characteristics of the industry limit the development mode of the enterprise,and the business model of the enterprise buries the hidden danger for itself,and finally,under the change of the macroeconomic environment,all this acts together,and the final expression is the default of the bond.The default of Shenwu environmental protection bond has brought bad influence to the company,but in the process of continuous development and perfection of China's capital market,the occurrence of bond default is also an unforeseen but understandable phenomenon in the process of development.Only by fully recognizing the problems in the process of development can we accelerate the perfection of China's capital market.The research object of this paper belongs to the environmental protection industry,although the focus is on the environmental protection industry,but the industry that appears the bond default is not only the environmental protection industry.The conclusion of this paper through theoretical analysis and data analysis also has reference significance for traditional industries to some extent.