Research On Corporate Debt Risk Of Dongbei Special Steel Group

With China's economic development into the “new normal”,in the context of economic growth shift and industrial restructuring,more and more downward pressure is on the economy.Economic risks and financial risks are hard to cover in the context of economic prosperity.Debt volume improvement after the debt expansion will also push the debt risk to the cusp.Especially in industries of overcapacity,credit risk is more worthy of attention.Since the first bond default occurred in China's bond market in 2014,the bond market has entered a period of frequent defaults.Although bond defaults will become a normal occurrence in the bond market,they will also impact the primary and secondary markets,affecting the financing functions of enterprises and aggravating market volatility.The fundamental reason for the default of bonds and how to deal with bond default as well as maintain the stable development of the bond market need us to keep summing up and exploring.In this article,using bond default of Dongbei Special Steel Group as an example,we analyzes the causes and consequences of the defaults,and finally draws the corresponding enlightenment.This case contains common problem of most overcapacity and state-owned enterprises when dealing with default.Meanwhile,the Dongbei Special Steel itself has a place worthy of our study.First of all,with the theory and data,the paper deeply analyzes the motivation of Dongbei Special Steel Group to issue bonds.Secondly,combining with the industry background,contacting the cause of the bond issue,this paper analyses the reason from the angle of the enterprise itself and many external influences in the process of enterprise management.Finally,on the basis of the Dongbei Special Steel Group bond default reasons,we get inspiration and suggestions,and get a certain innovation on summarizing method,put forward that the enterprise should choose a reasonable steady model,build a good market regulation system,focus on financial index anomalies in industries with excess capacity and the development of new products,such as for trade related issuance of enterprise bonds,and other market participants to provide certain reference and promote more healthy development of China's bond market.