A Case Study On Bond Default Of Protruly Company

Since the "11Chao Ri Bond" opened the precursor of credit default,the number of bond defaults has been increasing in recent years.In addition,China is currently in a special period of three superimposed periods.The economy is facing transformation and the downward pressure of the economy is increasing.The introduction of the new capital management regulations in April 2018 further clarifies the provisions of breaking the rigid payment and the increasing risk of the bond market,which is to investors and investors.Debt issuers are new tests.Taking Protruly Company bond default as an example,this paper combs and summarizes the research literature of domestic and foreign scholars on the corporate bond market and credit risk,and combines the current situation of the development of China's bond market to analyze the case of Protruly Company's bond default.In the case analysis part,firstly,it introduces the basic information,main business and operation status of Protruly Company,describes the issuance and rating of Protruly Bond,and reviews the default events of Protruly Bond.Secondly,from macroeconomic and industry factors,then to external supervision,rating agencies,as well as internal financial factors,excessive investment of major shareholders,company fraudulent listing and other aspects,this paper analyzed the causes of Protruly bond default.Finally,in view of the reasons for Protruly bond default,this paper puts forward some enlightenments to prevent the default risk of bond market,including improving the laws and regulations of bond market,strengthening the information disclosure mechanism and improving the credit rating system.At the same time,we should innovate the credit risk mitigation tools,improve the risk sharing mechanism and establish an effective bond default disposal mechanism.The main body of debt should invest reasonably and moderately,strengthen the internal governance of the company,disclose the company information legally and construct the crisis handling mechanism;the investors should establish risk awareness,strengthen the ability of risk identification,and follow up the business situation in time.The bond default event of Protruly Company is the first case of private equity debt default of listed companies in China.The reasons for the default are different from those of other bonds that default due to poor operation or in industries with excess capacity.However,in the case of good operation of the company,the default of bonds is caused by the counterfeiting of backdoor listing of the company and the excessive investment of the original controller of the company.Therefore,it has certain typicality and reference significance.By studying the case of Protruly Company's bond default,this paper analyses the causes of bond default,and puts forward corresponding suggestions and enlightenments,which enriches the research in related fields.I hope this paper can provide useful reference for promoting the healthy development of China's bond market.