Research On The Causes And Effects Of The Default Of Private Placement Bonds Of Listed Companies

Since 2012,China's bond market has experienced the phenomenon that SMEs' collective bills and collective bonds are repaid by guarantee companies,and then the substantive breach of “11 Super-Japan Bonds” on March 4,2014 broke the rigid redemption of the bond market.The situation makes it more focused on the possibility of default under corporate bonds.Beginning in 2017,China's financial market work continued to strengthen supervision,taking prevention and control of financial risks as the top priority,and effectively preventing and defusing financial risks.With the gradual advancement of new regulations for asset management,the supervision of divisions was shifted.Industry supervision,the entire market accelerated.The deepening of deleveraging and the continued pressure from strong supervision have caused the bubble left over from the credit expansion period of 2014-2016 to be pierced by the backlog.The situation of “doing less money and less money” is beginning to emerge.In 2018,the Chinese bond market was in high default,the number of new default issuers and the amount of bonds involved were far above the previous year.In the context of tight liquidity,more and more companies are in debt crisis.This paper first introduces the status quo of China's bond default,and then analyzes the causes of the "default tide" in recent years,mainly from the external factors and internal factors.External factors include macro environment and industry environment.Internal factors are mainly from the company.Starting from the ground up,analyzing the problems in the corporate governance and business process,leading to bond defaults.Then select Shenwu Environmental Protection Technology Co.,Ltd.as the case study object,analyze the cause of the breach of contract of Shenwu Environmental Protection “16 Environmental Protection Debt” and the impact of the default incident on Shenwu Environmental Protection Technology Co.,Ltd.This paper mainly focuses on macro environment,corporate governance and business model.The four aspects of working capital management were used to analyze the reasons for the default of “16 environmental protection bonds” and analyzed the impact of default events on Shenwu Environmental Protection Technology Co.,Ltd.Finally,the case is summarized,and suggestions are made from three aspects: the issuer,the investor,and the regulatory body.I hope that the case study of this article can further enrich China's research on bond default,help other companies and investors to identify the default risk of the company in time,and provide investors with advice on participating in the bond market.