Research On Default Risk Of Northcom Group Bond

Since 2014,the "11 day bond" event of default,the "rigid payment" rule of China's bond market has been broken.In the past two years,there has been a surge in bond defaults.In 2018,165 bonds defaulted,involving an amount of 153.425 billion yuan,up 320.86% compared with 2017.This trend will continue in 2019,with 231 bonds defaulting,involving an amount of about 224695 million yuan.Through the statistics of the new defaulting subjects in 2019,it is found that the bond defaults of private listed companies are frequent.And among these defaulting entities,there are more and more enterprises with radical investment strategy problems.Therefore,based on the characteristics of new default subjects in 2019,this paper selects Beixun Group Co.,Ltd.,a private listed enterprise,as an example to study the default bonds 18 Beixun 03 and 18 Beixun 04.The main research questions of this paper are: what are the main causes of risk in the process of corporate bond default? What is the relationship between these risk factors? And from the perspective of investors to find and prevent risk related recommendations,in order to protect the safety of investment.First of all,this paper makes a statistical analysis of the current situation of bond default in China in recent five years,and finds that the number and scale of the main body of bond default are increasing continuously in recent years,and the proportion of private listed companies is increasing rapidly.Therefore,this paper analyzes the causes of bond default risk of private listed companies,and divides the causes into four levels: external environment,internal expansion strategy,actual controller,corporate governance and financial aspects.According to this situation,this paper selects Beixun group,a representative private listed enterprise,to analyze the bond default risk from the perspectives of external environment,internal strategy,enterprise management and finance.Based on the analysis of the causes of these risks,it is found that there is a certain transmission relationship between these risk factors.Therefore,it summarizes the risk chain of bond default of similar enterprises,which is roughly as follows: due to the characteristics of the actual controller or manager,the enterprise chooses some improper internal strategies and makes mistakes such as mismanagement of the company,and the external market environment is not good It will lead to a series of business risks,which will be clearly reflected in the financial indicators shortly before the bond default.Finally,this paper puts forward corresponding prevention suggestions from the perspective of investors combined with the case.Through the existing literature research,it is found that at present,most of the research on the risk factors of bond default is empirical research or multi case study,less on the whole process of a single case,less on revealing the transmission relationship between various risk factors and putting forward feasible suggestions for investors.Therefore,this paper uses case study to reveal the risk process of corporate bond default,focusing on the relationship between risk factors.The significance of this paper is to help investors understand the current situation of corporate bond default more intuitively,to provide reference for investors through the analysis of the whole process of default cases,to help investors combine corporate strategy with financial analysis,to better identify the default risk of the issuer,to adjust the investment strategy in time,to ensure the safety of funds,and to stabilize the corporate bond market in China Stable and healthy development has certain practical significance.