A Case Study On Fuguiniao's Bond Default

In recent years,under the background of the macroeconomic downturn,the risk of China's bond market has become more exposed,and the event of default has been intensified.In the year of 2018,bond defaults have been repeated one after another.According to the Wind Information,as of January 2019,there were 242 bond defaults in China's bond market,and this phenomenon is called "the tide of default." This paper analyzes the default event with case study method.First of all,two bonds of "Fuguiniao","14 Fuguiniao" and "16 Fugui 01",were taken as research objects.From the basic situation of "Fuguiniao",the achievements and main business of the company were introduced,forming the enterprise background and the basis for selecting case object of this study.Secondly,this paper starts from internal and external aspects and studies many factors including market reason,financial reason and strategic reason of "Fuguiniao" 's bond default.Then,the effect of bond default event on "Fuguiniao" was analyzed.Finally,the experience and lessons of "Fuguiniao" bond default are summarized.The study found that the company stepped into the swamp of the main business bleak and diversified strategy failure.The exhaustion of the cash flow led to a substantial breach of contract.In the revelation part of the case study,this paper draws the corresponding lessons based on the above reasons for enterprise manager,bond market regulators and investors.