The Implementation Plan And Effect Of Yuanxing Energy’s Debt-to-equity Swap

Since the outbreak of COVID-19,my country’s broad money supply and social financing scale have increased rapidly.The combined effect of the epidemic has resulted in a sharp decline in GDP growth.The rise in corporate default rates has triggered a chain reaction.This is the fastest increase in the leverage ratio of the real economy after the 2008 financial crisis.year.To this end,my country has continued to introduce market-oriented debt-to-equity swap policies since 2016,and has achieved good results.However,as an important part of my country’s market economy,private enterprises play an important role in the capital market,accounting for more than 90% of the number of enterprises in my country,and their debt scale accounts for more than 60% of the total debt scale.Equity development has been slow,accounting for less than 10% of the total debt-to-equity swap cases.For this reason,this thesis selects the case of Yuanxing Energy’s market-oriented debt-to-equity swap as the research object.As the first market-oriented debt-to-equity swap project of a private enterprise listed in a national joint-stock bank,it has certain reference significance,and analyzes its design in the debt-to-equity swap model.Study its effects,evaluate the advantages and disadvantages accordingly,and finally make recommendations.First,this thesis adopts the literature research method to study and summarize the relevant theories of market-oriented debt-to-equity swap,and defines and expounds the relevant concepts of Yuanxing Energy’s market-oriented debt-to-equity swap and the theoretical basis used in this thesis;Energy made a basic introduction,and obtained the reasons for its marketoriented debt-to-equity swap from the analysis of its financial status and operating conditions;then,it gave an overview of the market-oriented debt-to-equity swap plan,and selected according to the target,conversion pricing and debt-to-equity swap plan The three-step design is described in detail,and it focuses on the analysis of the stakeholder’s bond in the issue of shares and debt repayment,the interest-based gambling agreement,the withdrawal agreement,and the post-investment management stage.The market reaction,financial effect and nonfinancial effect of the debt-to-equity swap,and draw conclusions to pave the way for followup analysis.Debt management and adherence to market-oriented principles can be used as a reference for subsequent research on market-oriented debt-to-equity swaps by private enterprises.In general,market-oriented debt-to-equity swaps want to be carried forward in private enterprises.Unlike large central enterprises that are led by the implementing agencies,the core point of market-oriented debt-to-equity swaps in private enterprises is to allow all parties to share interests fairly in the implementation and design of the plan.game.In this case,Yuanxing Energy has successfully reduced its own asset-liability ratio and improved its business environment through excellent debt-to-equity swap case design.Investors get investment income and creditors recover their liabilities.Although there are some deficiencies,its plan is still There are many lessons for reference,and deficiencies can also be improved through follow-up measures.It is worthy of reference for the follow-up private enterprises to implement marketoriented debt-to-equity swaps.