Case Study Of Chun He Group Bond Default

In recent years,with the rapid and orderly development of China’s capital market,the size of the bond market is also expanding,and the type,quantity and scale of bonds show a trend of rapid growth,followed by frequent bond defaults into the peak On May 15,2016,chunhe group failed to honor the first phase of short-term financing bonds worth 400 million yuan in 2015.On April 24,2017,the 540m yuan corporate bond issued by chunhe group in 2012 also failed to pay the 2017 annual interest in full amount on schedule.As a result,chunhe group became the first enterprise in China’s shipbuilding industry to default on both corporate bonds and short-term financing bonds.This paper takes chunhe group as the research object,studies and analyzes the specific reasons for the formation of bond default of chunhe group and finally draws the corresponding inspiration of debt defaultFirstly,based on the introduction of the operation and management of chunhe group,starting from the industrial background of the issuance of "chunhe bond 12"and "15CP001" bonds of chunhe group,the industrial situation of the issuance of bonds of chunhe group is restored,and the purpose of the issuance of bonds of the company is specifically analyzed.This paper sorted out,summarized and summarized the events that had significant impact on the company after the issuance of two bonds",and emphatically analyzed the financial situation of spring harmony group.Spring and group is a located in the eastern coastal city of shipbuilding enterprise,in recent years in international ship market downturn,internal poor management,overseas investment losses and shrinks multiple dilemma situation,such as spring and at the same time group in the period of shipping industry downturn,the company strategic decision to choose radical order makes group was forced to face the huge pressure,thus increasing the group’s funding liquidity risk,and spring and group in overseas business and eventually lead to failure of trade and investment group capital chain rupture triggered by defaultThen,this paper analyzes the causes of bond default in detail from the internal and external perspectives of chunhe group.Internal reasons are mainly from the company’s strategy and management decisions,the company’s financial risk,the company’s financing ability,the company’s compliance operation four aspects of the study found that chunhe group in these aspects are problems,such as the company’s strategy and management decisions,the quality of current assets deterioration,poor financing ability and the company’s illegal operation.From three aspects of the external causes,namely the downward trend of the shipping industry,the main underwriter and the intermediary organization,it is found that the default of chunhe bonds is related to the background of the shipbuilding industry,the underwriter’s failure and the audit institution’s failure to perform their duties and prevent and control risks.Finally,by analyzing the cause of bond defaults found hidden behind the appearance problem,and according to these problems it is concluded that the company wants to develop steadily forward will have to improve the quality of corporate finance,broaden the financing channels,and promote corporate compliance management,in addition to watchdog also proposed to improve the supervision of bond issue,the bond market participants can also learn lessons from the case,to guard against the risk of default level has important significance.