Research On The Causes And Preventive Countermeasures Of Yongtai Energy's Bond Default

In 2014,the first bond default event occurred in China's bond market,namely the “11 Super Day Debt” bond default event.The incident marked the break of "rigid redemption" in China's bond market,and the government is no longer at the bottom.After the incident,China's bond market was “frequently thunderous”.In the past four years,a total of 271 bonds have defaulted,and the amount of default involved was as high as 164.162 billion yuan.Especially in 2018,violations occurred frequently.As of August 31,2018,121 bonds were breached in only 8 months,and the amount of default was as high as 94.148 billion yuan.According to the news released by the Shanghai Clearing House,a large number of bonds will be concentrated in 2019,so in the future development,it is particularly important for bond issuers to do a good job in preventing bond default risks.At the same time,through analysis,we find that the main body of bond default in recent years is concentrated in traditional energy-based enterprises,that is,the development of the main business depends on traditional energy enterprises,such as coal mining,thermal power generation,petrochemical and other enterprises.According to statistics,in 2018 alone,there were successive defaults on bonds of many traditional energy-based enterprises such as Shengda Group,Chuanmei Group and Boyuan Group.Therefore,it is very urgent and necessary to study the causes and countermeasures of bond defaults in traditional energy-based enterprises.This paper adopts the case analysis method,the literature research method,the quantitative and qualitative analysis method to conduct a case study on Yongtai Energy,a company that just had a bond default on July 5,2018.Yongtai Energy is the only listed private enterprise in China's coal sector.It is a typical representative of traditional energy-based enterprises.At the same time,the nature of its private enterprises makes it less subject to government intervention,and it is more representative and researchable.This article first reviews the event of Yongtai Energy Bonds default.Secondly,it analyzes the reasons for the default of Yongtai Energy Bond from three aspects: macroeconomic changes,industry development bottlenecks and enterprises' own problems.Finally,from the perspective of the enterprise,it puts forward relevant suggestions on how to do well in the traditional energy-based enterprises to prevent the risk of bond default.Today,with the policy of structural reform on the supply side continuing to advance,in the face of the new normal of economic development,traditional energy-based enterprises are faced with a development environment where opportunities and challenges coexist.Doing a good job in preventing the risk of bond default in such enterprises will not only help the healthy development of the issuers,but also effectively prevent systemic financial risks in the bond market,and lay a solid foundation for the fight against the major risks of preventing and defusing.Achieving a "soft landing" for China's economic development has great significance.