Research On The Motivation And Performance Of Market-oriented Debt-to-equity Swap In Zhejiang Huayou Cobalt Industry

Compared with developed countries,the leverage ratio of non-financial enterprises in my country has always been at a high level.As early as 1999,due to the high debt of state-owned enterprises and the high non-performing loans of banks,my country implemented a government-led policy debt-to-equity swap.Single,concentrated in state-owned enterprises.In 2016,the "Opinions on Actively and Steadily Reducing the Leverage Ratio of Enterprises" was promulgated,marking the official start of my country's market-oriented debt-to-equity swap.This round of market-oriented debt-toequity swaps emphasizes the use of market-oriented and legalized methods,and comprehensive measures are taken to gradually reduce the debt level and leverage ratio of non-financial enterprises to prevent financial risks,and focus on the strategic strategy of excessive financial burden due to high debt.Emerging industries,and further expand the implementation target to private enterprises,but there are few successful cases of private enterprises at present.The development of private enterprises has an important impact on the national economy,and it is of great significance to study the marketoriented debt-to-equity swap of private enterprises to improve the debt problems of private enterprises and enhance my country's economic strength.Zhejiang Huayou Cobalt Industry is a leading enterprise in the upstream of the new energy industry chain and a private listed company.Affected by the industry cycle while the company is rapidly expanding and developing,in order to solve the current financial crisis and debt problems,the company has implemented a market-based debtto-equity swap.The text first comprehensively sorts out the market-oriented debt-toequity swap event of Huayou Cobalt,summarizes the characteristics of its marketoriented debt-to-equity swap model,and analyzes the specific process of its exit stage and implementation stage.Using the fishbone diagram analysis method to analyze the motives for enterprises to carry out market-oriented debt-to-equity swaps,the study found that Huayou Cobalt is facing a series of problems such as industry downturn,increased raw material costs,and downturn in corporate operating cash flow;The layout of the new energy industry belongs to the type of enterprises supported by marketoriented debt-to-equity swaps.Using the event research method and the financial indicator method to analyze the long-term and short-term performance of the enterprise after the market-oriented debt-to-equity swap,the study found that Huayou Cobalt can improve the enterprise's governance structure and capital liquidity after implementing the market-oriented debt-to-equity swap.In the short term,it can effectively reduce the equity pledge rate of the enterprise and is conducive to the further implementation of the enterprise strategy.