Research On The Disposal Methods Of Default Bonds In China

Under the background of supply-side reforms and continuous deepening of deleveraging,the downward pressure on the economy has become greater.Some companies,especially those with overcapacity,are diversifying for strategic transformation.However,aggressive expansion has led to excessive investment and financing,which has reduced the company's ability to resist risks.ability.With strong financial supervision,credit crunch,new rules for asset management breaking rigid payment,and corporate financing channels are limited,the risk of corporate default is becoming increasingly prominent,and defaults in China's bond market have entered normalization.Zou Lan,Director of the Financial Market Department of the Central Bank,stated that proper bond defaults are normal and will help the market to release the accumulated risks and promote the sound and stable development of the bond market.With the further deepening of the market-oriented reform of the bond market,how to improve the market-based and legalized default bond disposal mechanism and enrich the default bond disposal methods have become the focus of the market and regulatory agencies.At present,domestic and foreign scholars' research on bond defaults mostly focuses on the precautionary risk prevention aspects such as bond defaults,impacts,and early warning mechanisms.However,little research has been done on post-default disposal issues.The number of cases is relatively small,and few scholars have conducted case studies on the disposal methods of default bonds in China.Therefore,the research questions of this article are:What should the issuer do with the default bond after the bond defaults?What are the advantages and disadvantages of different disposal methods? How does the issuer choose the disposal method according to the actual situation of the enterprise? What are the difficulties in the practice of default bond disposal and how to overcome them? What role should the government play in the process of default bond disposal,and how can it help issuers and investors and facilitate the efficient and high-quality completion of default bond disposal?This article first summarizes and summarizes the current defaulted bonds in China,analyzes the characteristics of China's current defaulted bonds,and the characteristics of default disposal,and finds that the current private enterprise has a high default rate,strong flexibility in debt restructuring and high recovery rate,It is favored by private enterprises that breach the contract.Therefore,a typical case of Wintime Energy was selected to analyze the choice and specific implementation process of its bond default.Then,it summarizes the advantages and disadvantages of different default bond disposal methods,and the key points for successful completion of disposal.Based on the perspective of bond default disposal,it proposes to build a professional default bond disposal platform and introduce professional institutions to help companies complete the disposal and other suggestions.This article aims to analyze the choice of disposal method after bond default through a case,and provide a reference for the normalization of default bond disposal in the future.