Research On The Effect Of Chongqing Iron And Steel's Marketization Of Debt-to-equity Swaps

At present,China is in an important period of transforming the economic mode and optimizing the economic structure.However,due to structural,institutional and cyclical factors,China's economy is under increasing downward pressure,and enterprises still have problems such as unbalanced supply and demand,excessive debt burden and high leverage ratio.In order to prevent systemic financial risks,debt-equity swap as a means to maintain the stability of the financial market came into being.In October 2016,the state council issued the guidance on the debt-to-equity swap of market-oriented Banks,marking the beginning of a new round of debt-to-equity swap.Compared with the previous round of debt-to-equity swaps,this round of debt-to-equity swaps emphasizes following the principles of legalization and marketization.The equity swaps include not only state-owned enterprises and central enterprises,but also private enterprises.After that,relevant departments continuously improved the top-level design to promote the implementation of debt-to-equity swap.However,in the actual operation of market-oriented debt-to-equity swap,there were still constraints from the system design and market conditions,such as more contracts,less contracts,difficult subject selection,difficult pricing,and difficult participation in corporate governance.Therefore,it is of great significance to study the application influence of debt-equity swap to promote the implementation of debt-equity swap.Based on this situation,this paper selects the debt-equity swap project of chongqing iron and steel as the research object,deeply analyzes the application impact of debt-equity swap,hoping to provide a path for state-owned enterprises to implement debt-equity swap.In the research process,the implementation of the new round of debt-equity swap is firstly sorted out in detail,its definition is summarized and its implementation background and mode are analyzed.Case analysis part,emphatically analyses the reason of chongqing iron and steel into the debt crisis,driving factors of the solution to form of analysis of debt,and through combing debt stock solution for the debt convertible path for concrete analysis,finally,the focus from capital market reaction,corporate governance,management ability and the comprehensive analysis of the financial performance of debt turn application effect.Through the analysis of the application of chongqing iron and steel market debt-equity swap,the potential problems are found.On this basis,the research conclusions and relevant Suggestions are drawn.As the first debt-to-equity restructuring of a listed company in the steel industry and the largest debt-to-equity swap case of a state-owned listed company,the debt-to-equity swap case of chongqing iron and steel is of far-reaching significance and provides certain reference value for future optimization of the implementation model and institutional reform.