Application Research Of Market-oriented Debt-to-equity In Lingang Industrial Group

In 2016,China began a new chapter of debt-to-equity swap,that is,it decided to promote market-oriented debt-to-equity swap.The new round of debt-to-equity swap will not only greatly widen the range of participating enterprises,but also,most importantly,let the market play its decisive role to the full,thus helping enterprises to reduce their debts,thus improving their operating efficiency and improving their corporate governance structure,also causes the enterprise original economic risk to reduce greatly.First of all,this paper analyzes the research results of debt-to-equity swap,corporate governance structure and capital structure at home and abroad,and analyzes the concept of market-oriented debt-to-equity swap,with an objective perspective,the last round of policy-oriented debt-to-equity swap and the current round of market-oriented debt-to-equity swap are compared and summarized.Then,this paper introduces Lingang Industrial Group as a case to introduce the group's current situation,temporarily into a serious financial crisis,in order to solve this phenomenon,this paper discusses the necessity of carrying out market-oriented debt-to-equity swap from the aspects of the relationship between Lingang Industrial Group and government,occupied resources,industrial dominance and core competitiveness,etc.,from the policy,economy,market,technology and other aspects of the implementation of the feasibility of market-oriented debt-to-equity swap.After that,the paper analyzes the Lingang Industrial Group from various angles,introduces the concept of debt-to-equity swap,which is a fund model to raise social capital,and specifically analyzes the basis and conditions for the group to choose this model,and purpose of implementation.Through a detailed analysis of Lingang Industrial Group's market-oriented debt-to-equity swap plan,we can draw the conclusion that enterprises want to completely eliminate the problems in their development,and the debt-to-equity swap can only be used as an auxiliary tool for a short time,it must not be seen as the only means of permanently cancelling the debt,nor can it be seen as the only hope for the high level of development of the enterprise.Enterprises should actively communicate with local commercial banks,study the development direction suitable for enterprises themselves,seek appropriate share conversion ratio,and travel light.And encourage commercial banks and implementing agencies to participate in the supervision and management of debt-to-equity swap enterprises to maximize the role of debt-to-equity swap under the market economy,to complete the supply-side structure reform in China.