Research On The Implementation Effect Of Chang Jiang Shipping Group Phoenix Co.,Ltd Market-oriented Debt-to-equity Swap

In recent years,with the emergence and development of global overcapacity,China's economic development has begun to encounter new pressures.Overcapacity has gone beyond the scope of the country and spread throughout the world.Due to weak demand in the domestic market,there are excess capacity and overstock of inventory,which bring huge obstacles to the development of real economy.Under the economic downturn,the leverage ratio of some enterprises keeps rising and the non-performing rate of bank assets expands.Faced with this situation,the supplementary measure of supply-side reform,debt-to-equity swap,has come out again.In 1999,China's "first round of debt-to-equity swap" was gradually practiced in exploration.At that time,China was transiting from a planned economy system to a market economy system,so the state established four state-owned asset management companies to promote the reform process.Debt-to-equity swap provides a new way to solve the debt crisis in China,but it does not go deep into the fundamental level of internal management of state-owned enterprises.In recent years,China has again put forward the method of debt-to-equity swap to reduce the leverage rate.This debt-to-equity swap emphasizes that it should be carried out in a market-oriented manner,following the will and principles of the market participants,and the main body of the swap decides whether to swap shares independently,making market-oriented pricing.This debt-to-equity swap can effectively reduce the excessive leverage rate of enterprises,the financial risks of banks and other corporate creditors,and play a win-win role for all parties involved in Debt-to-Equity Swap under bankruptcy restructuring.Therefore,this paper takes chang Jiang Shipping Group Phoenix co.,Ltd's debt-to-equity swap as the research object,explores the market-oriented debt-to-equity swap,and points out the way for enterprises facing financial difficulties.This paper chooses chang Jiang Shipping Group Phoenix co.,Ltd's debt-to-equity swap case as the object,explores the market-oriented debt-to-equity swap,and points out the way for enterprises facing financial difficulties.The foundation of economic growth is weak,and developing countries are facing tremendous downward pressure.The economic downturn is an important reason for the high leverage rate and the aggravation of debt burden of Chinese enterprises,which also makes the operation of enterprises difficult to move.Taking market-oriented debt-to-equity swap of chang Jiang Shipping Group Phoenix co.,Ltd as an example,based on signaling theory,agency cost theory and incomplete contract theory,this paper uses literature research method and case analysismethod to analyze the reasons of market-oriented debt-to-equity swap of chang Jiang Shipping Group Phoenix co.,Ltd on the basis of introducing market-oriented debt-to-equity swap cases: high asset-liability ratio of debtor enterprises,high non-performing loan rate of bank assets,The industry market is depressed,etc.From the implementation effect of market-oriented debt-to-equity swap,we can see that chang Jiang Shipping Group Phoenix co.,Ltd.has succeeded in preserving its shell,and after debt-to-equity swap,its solvency,profitability and operation ability have been improved.Creditors as shareholders have also improved the internal governance structure of enterprises,making chang Jiang Shipping Group Phoenix co.,Ltd.in the industry is also in a larger potential position,not only to ease the pressure of deteriorating asset quality of commercial banks,but also to protect the employment of social members and maintain social stability.It is concluded that the reorganization of the converted enterprises can not only reduce the short-term development pressure of the enterprises,but also enhance the operating income of the enterprises when they have good economic conditions,so that both the enterprises and creditors can obtain sustained increased profits.