Research On The Operation Mode And Effect Of Debt To Equity Swap Of Private Enterprises In China

In recent years,under the pressure of China's economic downturn,the income situation of enterprises is poor,the profit situation fluctuates greatly,the problem of high leverage gradually aggravates,and the debt risk also increases.In this context,in October 2016,the government launched a new deleveraging tool market-oriented debt to equity swap.After the introduction of the tool,most state-owned enterprises have adopted the tool,while private enterprises are relatively few.This phenomenon is mainly due to the larger risk of private enterprises compared with state-owned enterprises,and the insurance practice of debt to equity swap institutions in the early stage of the tool.The market-oriented debt to equity swap project of Nanjing Iron and Steel Co.,Ltd.is the first debt to equity swap project of local private enterprises in China,which has certain research significance.Taking this as the research object,this paper analyzes its implementation motivation,operation mode and implementation effect,and finds that: in terms of motivation,Nanjing Iron and Steel Co.,Ltd.and China Construction Bank start the project under the condition that both sides have demand and will;in terms of operation mode,Nanjing Iron and steel Co.,Ltd.shows how to play games with the implementation agencies to find the balance of interests of both sides;in terms of implementation effect,it has long-term performance The effect is obvious,the high leverage can be alleviated,and the business situation can be improved.Although the debt to equity swap scheme still has some shortcomings,it plays a positive role in general.Finally,by analyzing the operation mode of other people's debt to equity swap,and comparing with Nangang's stock market,we can get the essence and summarize the "careful machine" which can be adopted by the high quality private enterprises in the different stages of the marketization of debt to equity swap,so as to promote the smooth development of the market debt to equity swap in the private enterprises.