Case Study Of Market-oriented Debt-to-Equity Swap In Shandong Gold Mining Co.,Ltd.

In 2014,China's economy entered the "New Normal".With the increasing downward pressure on the economy,the leverage ratio of non-financial enterprises continues to rise,and the non-performing loans of banks continues to rise,too.So,China clearly proposed the supply side structural reform in 2015.With the strong support of the state and the active participation of various enterprises,the market-oriented debt to equity swap is gradually becoming the main force of supply side structural reform,which provides a strong guarantee for preventing and resolving systemic financial risks.Different from the government led debt to equity swap in the last round,this market-oriented debt to equity swap is based on the principle of marketization and legalization,.It not only reduces the accumulated debt of high debt enterprises,but also promotes the reform of mixed ownership of high debt enterprises.The swap of debt to equity not only "turns up",but also makes the market entities "live up".The problem of this paper is in the three-year practice of market-oriented debt to equity swap,what are the motivations of the enterprises and implementing agencies involved in debt to equity swap? How does it work? To what extent does it reduce the burden of enterprises and what changes it brings to the implementing agencies? Are there any new problems that need to be solved in the implementation process and how to solve them.In view of this,this paper chooses the case of Shandong Gold Mining Co.,Ltd.as the starting point,systematically combing the causes and consequences of the successful signing of the case,focusing on the analysis of the impact of the cooperation on both sides,summarizing the demonstration value and reference value.Finally focusing on the future,refine the problems in the process of progress and effective policy suggestions that need to be solved.The innovation of this paper may be to start with the case of debt to equity swap in Shandong gold Mining Co.,Ltd.,by means of multiple perspectives comparison and qualitative analysis and quantitative analysis.And pointed out that debt to equity should be classified according to the size of enterprises,choose the appropriate operation mode,and be careful to prevent the target enterprises from "adding leverage" again.However,due to the author's cognitive level and incomplete public information,this paper should have been better.