Case Study On Kaidi’s Eco-bond Default

Bond issuance is an important channel for enterprises to direct financing.Bond market is also the largest capital market and the main market for enterprises in developed countries to raise funds.But compared with the development of stock market,the bond market in our country started late and lagged behind.China’s corporate bonds were first issued in 2007,with a short period of development,a serious lack of data,and no effective credit evaluation mechanism has been formed.The risk of Chinese corporate bond market gradually exposed.In the first half of 2018 alone,there were 117 announcements about bond and note defaults,compared with385 before 2018.This shows that in recent years,corporate debt risk in China has been concentrated outbreak.Among the enterprises that concentrated on debt default in 2018,there are many eco-environmental protection enterprises,including Kaidi Ecology,Shenwu Environmental Protection,Shengyun Environmental Protection and other private enterprises.It can be said that the current hot environmental protection industry is not a smooth development,but also has many problems.The research object of this paper is Kaidi Ecology.which is located in the eco-environmental protection industry.At present,China vigorously develops the new energy industry of eco-environmental protection,but the development of this industry is not smooth sailing,Kaidi Ecology has been facing difficulties and difficult to move forward.Firstly,this paper combs the general situation of the development of corporate bond market in China,and the current situation of bond default of Listed Companies in China.Then,by reviewing the whole process of the default of Kaidi Eco-bond,combing the development of the default,we can find the main reasons for the default from the opportunities and challenges faced by the whole industry of external eco-energy conservation and environmental protection,as well as the internal management of Kaidi Eco-bond.The research object of this paper is Kaidi Ecology Co.,Ltd.which is located in the eco-environmental protection industry.At present,China vigorously develops the new energy industry of eco-environmental protection,but the development of this industry is not smooth sailing,Kaidi Ecology has beenfacing difficulties and difficult to move forward.Firstly,this paper combs the general situation of the development of corporate bond market in China,and the current situation of bond default of Listed Companies in China.Then,by reviewing the whole process of the default of Kaidi Eco-bond,combing the development of the default,we can find the main reasons for the default from the opportunities and challenges faced by the whole industry of external eco-energy conservation and environmental protection,as well as the internal management of Kaidi Eco-bond.