A Case Study Of "16 Qianli 01" Default

As our economy gradually entered the new normal in 2013,China’s bond market also experienced its first default in 2014,breaking the traditional rigid payment in our bond market.The credit risk of bond market has been exposed gradually and has become the subject of research by scholars and investors.When more and more bonds default,it will be very beneficial for the healthy development of China’s bond market and better management of investment risk for investors to study the causes of bond default and put forward policy Suggestions to prevent bond default.Based on this,this paper takes "16 Qianli 01" as an example,conducts an in-depth study on the causes of bond default,analyzes the influencing factors of bond default,and finally puts forward policy Suggestions from four perspectives.Firstly,this paper describes the default situation of the bond market as a whole,including the historical statistics of the number and amount of default,and the analysis and summary of the default situation of listed companies,laying a foundation for the case analysis below.Secondly,this paper USES the cash flow of three aspects of the company’s cash flow statement to specifically analyze the reasons for the default of "16 Qianli 01",respectively from three aspects of investment activities,business activities and financing activities to analyze the reasons for the default of corporate bonds;Finally,from four perspectives,how to prevent the risk of bond default to provide advice.It has certain practical significance for the long-term development of China’s bond market and also has certain reference significance for investors to better manage investment risk.This paper deeply analyzes the reasons for the default of corporate bonds from three aspects,mainly from the perspective of corporate cash flow to analyze the reasons for the default of "16 Qianli 01" bonds.After the backdoor listing of the company,blind external mergers and acquisitions led to a large number of investment cash flow out of the company.A large amount of accounts receivable and prepaid accounts in the company’s business activities occupy a large amount of working capital of the company.In addition,after providing false materials for backdoor listing,the company was investigated by China securities regulatory commission.Negative events of the company caused Banks and other financial institutions to stop providing loans and blocked the company’s refinancing channels.Three adverse factors lead to cash flow crisis.In the end,the company’s failure to pay bond interest on time constitutes a default.By analyzing the reasons for bond default,we put forward policy Suggestions from four aspects,hoping that similar bond default events will not occur in the future.