The Influencing Factors And Countermeasures Of Shenwu Environmental Bond Default

In 2019,China's bond market exceeded Japan and became the second largest bond market in the world after the United States.While the bond market in China became more and more mature,the hidden credit risk gradually entered people's view.In 2014,the first year of China's bond default,the rigid payment of bonds was broken,and then the default occurred one after another,both in scale and quantity,reached a new height in 2018,a total of 120 bonds defaulted,the default scale was as high as 117.651 billion yuan,of which private enterprises became the key collapse area,103 bonds from private enterprises defaulted,was as high as 107.2 billion yuan,accounting for 91.1% of the total default scale.Therefore,it is necessary to carefully comb the process of bond default in private enterprises,deeply analyze the influencing factors of default,and take effective early warning of its credit risk.This paper takes “16 environmental bonds ”issued by Shenwu Environmental Protection Technology Co.,Ltd.(hereinafter referred to as “Shenwu Environmental Protection”)as the research object.Firstly,it briefly introduces the basic situation of Shenwu environmental protection,16 environmental bond default,bond default process,then analyzes the influencing factors of bond default from outside and inside,and then analyzes the financial market situation,financial market supervision and the main business mode,transaction and financial situation of Shenwu environmental protection in China.Tight regulation,credit crunch and shenwu environmental EPC business model has inherent drawbacks,abnormal related party transactions frequent,financial deterioration and other factors combined to enhance the “16 environmental debt” default risk,and finally announced a formal default.On the basis of the conclusion of this paper,this paper puts forward some suggestions on Shenwu environmental protection,that is,we should strengthen risk management,optimize business model,establish reasonable financial structure,improve and upgrade from many aspects of corporate governance and operation ability,so as to improve its ability to deal with credit risk.