Case Analysis Of China Construction Bank's Participation In The Market-oriented Debt-to-equity Swap Of YUNNAN Tin Group

In recent years,the world's macro-economy has been in a downward period.Coupled with the impact of the epidemic,the world economy was developed very slowly in 2020.As the only big country with positive economic growth,China has presented its superior national system and effective national policies.In 2020,in order to promote the implementation of the Six Stability and Six Guarantees Policy,the state and enterprises have issued a large number of bonds,which can help enterprises resume work and production and promote economic growth.But it also has significantly increased the debt ratio of enterprises.In addition,the problems of high debt ratio and overcapacity of large state-owned enterprises in China have not been properly solved.If the debts of enterprises cannot be paid on time,it will manifest as non-performing loans in the balance sheet of commercial banks.Once the non-performing loan ratio increases,it will seriously affect the normal operation of banks,and then cause a crisis to the entire financial system.In order to solve the debt problem between banks and enterprises,China has implemented two rounds of debt-for-equity swap.It is expected that through this round of market-oriented debt-for-equity swap with the background of supply side structural reform,the balance sheet structure of large state-owned enterprises in China will be improved to make sure that they can continue to develop healthily.This thesis elaborates the theoretical basis and practical development of the market-oriented debt-to-equity swap.Taking the implementation of the market-oriented debt-to-equity swap project of YUNNAN Tin group by CCB as an example,this thesis focuses on the analysis of the motivation of CCB's participation in the debt-to-equity swap and the risks of subject selection,credit,capital occupation and equity withdrawal faced by CCB in this process.It is found that commercial banks' participation in the implementation of market-oriented debt-to-equity swap is a measure that has many benefits to the society,enterprises and commercial banks themselves.However,the risks cannot be ignored.These risks will affect the implementation effect of the project,and then affect the operation of the whole debt-to-equity swap market,which will even further pose risks to the whole banking industry and even the financial market.Therefore,this thesis proposes that commercial banks should carefully select the target enterprises,strengthen the follow-up supervision of the enterprises,innovate the operation mode of debt-to-equity swap,and increase financing channels.In addition,in view of the blank market of debt-to-equity swap for small and medium-sized enterprises,this thesis proposes that commercial banks should establish a special institution for small and medium-sized enterprises to implement debt-to equity-swap under the guidance of the government.