A Case Study Of The Market-oriented Debt-to-equity Swap In Yunnan Tin Industry

Since the financial crisis in 2008,with the continuous development of China's economy,state-owned enterprises are always faced with the problems of heavy debt burden and unreasonable capital structure.On the one hand,it is the capital demand for the development of state-owned enterprises themselves;on the other hand,it is more convenient for state-owned enterprises to borrow money from commercial banks.These two aspects lead to the increasing debt burden of state-owned enterprises in China,which is the first step in the implementation After the turn of policy debt into equity,the debt of enterprises has been reduced.However,because the fundamental problems of enterprises have not been solved,state-owned enterprises are still facing the problem of excessive debt,and the risk of non-performing loans of commercial banks is also increasing.For a long time,it is not conducive to the healthy development of China's economy,and there are great economic risks.Therefore,it is urgent to reduce the leverage of enterprises and promote the healthy development of enterprises.Under this economic background,the five tasks of supply side structural reform and "three elimination,one reduction and one subsidy" have been formally proposed.In October 2016,the government issued relevant guidelines to reduce the leverage ratio of enterprises by using market-oriented debt to equity swap.The State encourages enterprises with excessive debt to cooperate with banks,adhere to the market-oriented principle,and the government does not intervene in them.Through market-oriented debt to equity swap,the purpose of reducing the asset liability ratio of enterprises is achieved,reducing the debt of enterprises and reducing the risk of commercial banks In order to promote the healthy and stable development of China's economy.This paper takes Yunnan Tin Group's market-oriented debt to equity swap as a case study.As the first local state-owned enterprise in China to try market-oriented debt to equity swap,Yunnan Tin Group's experience is of great significance to other enterprises planning to implement debt to equity swap.This paper introduces the development and operation of Yunnan Tin Group,explains the implementation process of market-oriented debt to equity swap,and deeply analyzes the reasons for the implementation.The article specifically introduced the development and operation of Yunnan Tin Industry Group,and explained in detail the process of the implementation of market-oriented debt-to-equity swaps,and in-depth analysis of the reasons for the implementation,including corporate compliance with the implementation of debt-to-equity swaps,conducive to reducing corporate debt,cloud Tin has the basis for policy debt-to-equity swaps and the encouragement of national policies.In the part of the implementation effect of market-oriented debt-to-equity swaps,a comprehensive analysis is made from two aspects: the impact on Yunnan Tin Industry and the impact on commercial banks: in terms of the impact on enterprises,the implementation of debt-to-equity swaps can be optimized through analysis and conclusions.Governance structure,cost reduction,and financial performance improvement.In the financial performance analysis part of the company,the principal component analysis method is used to select the financial data of Yunxi Group in recent years,and the comprehensive financial performance level of the company is in the implementation of debt-to-equity swaps.Then it changes from negative to positive,thus drawing a conclusion.On this basis,it summarizes the successful experience and shortcomings of Yunnan tin industry,and analyzes the existing problems of Yunnan Tin Group,which will help the group to improve its own shortcomings and better implement the market-oriented debt to equity swap.Finally,based on the case study of Yunnan Tin Industry Market-Oriented debt to equity swap This paper summarizes the enlightenment to other enterprises,including paying attention to the combination of internal governance and market-oriented debt to equity swap,choosing the appropriate debt to equity swap mode and paying attention to post investment management,and paying attention to external risk prevention and control.In addition,the government should continue to follow up the relevant policies,guide the participation of social funds and strengthen the supervision of debt to equity funds,so as to provide reference and practical experience for enterprises who want to reduce the burden through market-oriented debt to equity swap,promote the better implementation of market-oriented debt to equity swap,and contribute to the further development of China's economy.