Case Study Of Zhongjin Gold On Debt-to-Equity Swap Nested Assets Injection

At present,facing the problem of increasing deterioration in the economic situation,China is actively changing the pattern of economic development,advancing the industrial structure,and probing and innovating an economic system suitable for China.But due to structural,institutional and cyclical factors,Imbalanced supply of and demand for companies still exist,there are also have some problems,such as the heavy financial burden,and high leverage.To avoid destructive damage to macro economy,strengthen defense against major financial risks,debt-to-equity swap emerged as a means to stabilize enterprise system and promote reform.In October 2016,the issuance of the guidelines on banks' debt-for-equity meant that debt-for-equity swaps formally became a significant instrument for deleveraging.Different from the 20 th century's government-led debt-for-equity that mainly aimed at lowering the non-performing loan ratio of banks,the debt-for-equity swap emphasizes diversification and the principle of law.The targets of the debt-for-equity swaps include central and private enterprises.After that,the relevant management departments constantly perfected the top-level design to facilitate the operation of debt-to-equity,but this round of debts into shares in practice still faces various restrictions,there are more than signing,landing out less,difficult target selection,difficult exit of institutions,and difficult participation in corporate governance issues.The development of gold industry of our country's financial security and stability,economic health has important significance to the smooth running,at the request of the environmental policy,some mines with rectification,together with gold,copper,non-ferrous metal price have fluctuated,The operating income of the gold mining industry has been affected,profitability has deteriorated,so it is urgent to take measures to improve the business dilemma.Based on the above situation,this article selects the zhongjin gold as the research object,studying the innovative mode of debt-to-equity and high quality assets injection.Firstly,the text summarize the domestic and overseas experience in a similar of debt-to-equity,then the case method is adopted to the zhongjin gold debt-to-equity nested asset injection introduced and research this project,expounds the running process of the two steps of zhongjin gold debt-to-equity nested asset injection in detail,and emphatically analyzes the agent,advantages and operation effect of its debt-to-equity swap.It is discovered that the implementation of the transaction decrease its asset-liability ratio,successfully out of its financial troubles and enhance profitability and growth ability in some extend.At the same time,it enriches the ownership structure and enhances the management ability.But the short-term impact on the capital market is not significant,There are still some problems with the debt-for-equity process,give correlate recommend on this basis: seriously pick the enterprise that can implement debt-to-equity swap,increasing the government's policy support,to expedite the relative equipment and combine multi-channel and new financing mode to debt-for-equity,Perfect the enterprise governance and Actively promote the implementing agencies to participate in corporate governance.Expectations can present path for subsequent enterprise implementation of debts into shares.