Case Study Of Guirenniao Bond Default

In recent years,China’s economy has entered a painful period of transformation and upgrading,resulting in the concentrated outbreak of the bond market risk.On March 4,2014,there was a default of "11 Chaori Debt".From then on,China’s bond market broke the rigid payment.In 2019,the number and scale of defaults in China’s bond market reached a record high,with a total of 200 bonds defaulting and a default amount of 145.604 billion yuan in the whole year.In the new stage of the bond default in China,it is necessary to analyze bond default cases,study the causes of bond default and find out the countermeasures to reduce the risk of bond default,which is of practical significance to reduce the occurrence of bond default events and promote the healthy development of China’s bond market.This article takes the Guirenniao as the research object,combs the process of its bond default,and analyzes the causes of its default in order to provide some enlightenment suggestions for various parties of bond market.This article first briefly introduces the current status of China’s credit bond market issuance,and summarizes the default characteristics of the credit bond market;secondly,it introduces the historical evolution,business conditions and equity structure of Guirenniao,and combs the entire process of its bond default.Then,it goes deep into the macro,industry,corporate governance and finance levels,and concluded that under the background of continuous slowdown in macroeconomic growth,tightening financing environment and fierce competition in the sports shoes and apparel industry The collapse of the company’s diversification strategy has led to a rise in the company’s debt risk.In addition,the company’s internal governance issues have become prominent,the main business has been poorly managed,and financial risks have continued to accumulate.Subsequently,according to the analysis of the early warning status of the Guirenniao’s default risk based on the credit rating,it was found that the rating agency failed to give an early warning of the Guirenniao’s default risk,and the rating results have a certain lag.At the same time,from the perspective of the Guirenniao company itself and investors,the impact of Guirenniao default was analyzed.Finally,according to the above analysis,this paper puts forward some countermeasures to solve the debt default problem of the Guirenniao itself,and puts forward corresponding enlightenment suggestions to other companies,regulators and investors.