Case Study On Debt To Equity Swap In Aluminum Industry Of China

As China has fallen in market demand and entered the new economy,the burden of non-financial corporations,in particular state and core companies,is increasing and the share of growth is still increasing,which is at risk of social security and economic security Development.In the 1990s,there has been talk of helping companies to share out debt and debt.Council 'Guidelines for the conversion of creditors'rights into market-oriented bank capital'(hereinafter referred to as'the Guidelines'),which means China has opened a new debt round for the conversion of financial resources Both of them.As an effective means,the debt exchange contributes to deepening the reform of state-owned enterprises and resolving the problem of the excessive debt ratio of state-owned enterprises.Based on this,Chinalco,a large company in the non-ferrous metal industry,is selected to carry out the case study,mainly to study the implementation plan of debt to equity swap and its impact after the implementation.This paper summarizes the research status of debt to equity swap,and makes a systematic analysis for Chinalco's debt to equity swap through the study of relevant theories.This paper analyses the general situation of the aluminium industry in China and the motivation of debt-evolving shares,the selection benchmark,the pricing strategy,analyse in detail the withdrawal channel and other specific debt implementation schedule for equity swaps and the implementation characteristics of the system;discussed.In This contribution analyses the impact of Chinalco's bond on equity swaps from four aspects:market response,financial situation,Company management and possible Problems.(1)the market response to the implementation of debt stocks is negative.(2)The debt to equity swap of Aluminum Corporation of China has effectively solved the problem of excessive debt,effectively improved the company's own solvency and profitability,but the improvement of operation ability is not obvious.(3)The internal management of the company is optimised,self-financing,the board of directors and the debt structure of the company are reasonable and irrational investment behaviour is reduced.(4)The company has problems protecting the rights and interests of external investors and the internal control structure;from the From the above perspective,Chalco's debt conversion implementation plan has achieved results for the first time.According to the case analysis procedure,this paper summarises the useful experience of the implementation principle,the selection of participants and the characteristics of the system,and puts forward creative suggestions in the aspects of exit channels,supporting mechanism and financing focus,aiming at the problems existing in the case and its implementation scheme,so as to provide new development path and corresponding beneficial experience for better promoting the work of debt to equity swap.