A Case Study On Bond Default Of Jingui Yinye

In recent years,China has vigorously developed direct financing with bonds and stocks as the main financial instruments.With the gradual improvement of the financing function of the capital market,the issuance scale and quantity of bonds in China have made a qualitative leap.However,after the “11 Chaori Corporate Bond” officially defaulted in 2014,the protection of rigid redemption was broken.Under the dual influence of the overall macroeconomic downturn and the strengthening of national supervision on corporate lending,some industries are depressed,commodity prices remain low,combined with the insufficient operation and management ability of enterprises,which together lead to the deteriorating cash flow of some enterprises,and the phenomenon of bond defaults has become more and more intense.By the end of 2020,582 bonds issued by 211 entities in China's bond market had defaulted,with a total default value of 524.29 billion yuan.The normalization of bond default seriously hinders the healthy development of China's bond market.In order to explore the transmission path behind corporate bond default,the economic consequences caused by default and the disposal methods after default,this paper selects the bond default event of Jingui Yinye,which is known as "The First Share of Silver in China ",as the research object to carry out specific analysis.The research contents of this paper are as follows: First of all,this paper sorts out the causes,economic consequences and disposal of corporate bond default related literature,and briefly introduces the bond default research related to the core concepts and theoretical basis.Secondly,it briefly introduces the basic situation and debt situation of Jingui Yinye.At the same time,it reviews the default process of Jingui Yinye bonds and briefly explains the subsequent handling of its default.Then,this paper constructs a dynamic dialectical analysis framework in which external factors play a role through internal factors.,and analyzes the causes and transmission path of the default from the external environment,the ownership structure of Jingui Yinye,the characteristics of decision-makers,internal control,strategy formulation and other aspects,as well as the economic consequences caused by the default and the disposal methods chosen by the default.Finally,based on the results of the case study,this paper puts forward some suggestions to alert other issuers.Based on the content of the case study,this paper draws the following conclusions:(1)The bond default of Jingui Yinye is the result of a combination of external and internal factors.The ownership structure of "one share dominates" was the fundamental reason for the bond default of Jingui Yinye,and the deterioration of the external environment was only the inducement,while the expropriation of the interests of major shareholders,radical mergers and acquisitions investment strategy and crazy behavior in advance were the direct reasons for the financial deterioration of Jingui Yinye;(2)The economic consequences caused by the bond default of Jingui Yinye are multifaceted,the most serious of which is the continuous operation crisis.In addition,bond default also caused Jingui Yinye to face a greater risk of delisting,serious loss of shareholder wealth and significant employee resignation;(3)Jingui Yinye dealt with the defaulted bonds through bankruptcy reorganization,which can satisfy the interest demands of all parties to the greatest extent and successfully resolve its own debt crisis,finally achieving a win-win situation for all parties.