Case Study Of Wu Yang Construction Group Bond Default

After the "11 Chao ri Debt" became the first default bond in the bond market in 2014,the bond defaults intensified.Against this background,it is necessary and practical to strengthen the research on the default risk and its risk management of bonds and corporate bonds.Wu yang debt at the time of issuance,credit and debt credit are AA level,even in the first four months of bond default,credit rating is AA grade five foreign debt,but in just a few months,the Wu yang construction group and Wu yang debt credit rating cliff type downgrade,during which time out of commission and the Shanghai Stock Exchange of Wu yang construction group punishment,this is because the operating conditions of Wu yang construction group had mutations in these,or is it hidden behind the undercurrent of the outbreak? when the Wu yang construction group approached the default,it was found that the company had information disclosure fraud.What is the reason for a fake company to successfully issue bonds? This article will comb these problems and give the author’s thinking about it.First,the basic situation of the Wu yang Construction Group is briefly introduced,and the process of bond default is reviewed comprehensively.Second,in order to find out the reason why the Wu yang construction group has a default,the article tries to find answers from the inside and outside of the Wu yang construction group respectively.Research on three aspects of the internal reasons from Wu yang construction group financial risk,financing capacity and corporate governance,found Wu yang construction group were problems in these three aspects,some problems such as the deterioration of the quality of assets,financing cash flow declined and the company compliance management etc..Three aspects of the external reasons mainly from the industry situation,the construction industry rating agencies and bond underwriters of five foreign debt default with the construction industry background,the rating agencies rating is not timely and the underwriter fails to fulfill the obligation of diligence;finally,on the basis of this research,the author draw the conclusion that to improve enterprise financial quality,broaden the financing establishing and perfecting the external system and improve the supervision mechanism of the bond issuance of enlightenment.The author also hopes to provide some reference and reference for enterprises and investors.