A Study On Debt-to-equity Swap For China CSSC Holdings Limited

In order to solve the problem of China’s surge in bank non-performing loans and excessive corporate debt leverage,market-oriented debt-to-equity swaps officially launched in 2016.At the beginning of the development,the market-oriented debt-to-equity swaps were mostly signed and landed less.Since 2018,the relevant departments and agencies such as the National Development and Reform Commission and the Ministry of Finance have successively issued a series of policies and measures to accelerate the implementation process of this round of market-oriented legalized debt-to-equity swaps.China CSSC Holdings Limited debt-to-equity swap plan was announced and successfully implemented in 2018.This thesis takes CSSC Holdings debt-to-equity swap as a case to analyze the characteristics of the new operation mode and its implementation impact under the policy of market-based legalized debt-to-equity swap.This model implements the corresponding difficulties and proposes corresponding ideas,which provides ideas for the development of China’s debt-to-equity swaps.This thesis systematically expounds the concept and function,process and mode of debt-to-equity swap,the development of domestic and foreign debt-to-equity swaps,sorts out the current market-oriented debt-to-equity swap policy,and clarifies the new characteristics and new models of this round of market-oriented debt-to-equity swaps.Case studies of CSSC Holdings debt-to-equity swaps,expounding the basic situation of CSSC Holdings,analyzing the motives,implementation plans and implementation process of debt-to-equity swaps.Secondly,this thesis analyzes the implementation effect of CSSC Holdings debt-to-equity swap from four aspects: solvency enhancement,business and equity structure optimization,profitability enhancement,and industrial concentration improvement.Finally,based on the previous analysis,this thesis proposes the enlightenment significance of CSSC Holdings in the rational selection of debt-to-equity swap mode,prudently-priced debt-to-equity swaps,controlling the risk of debt-to-equity swaps,and protecting the rights of debt-to-equity institutions,and continues on CSSC Holdings.The problems that may be encountered in the implementation of debt-to-equity swaps are targeted to propose corresponding proposals to improve the stability of the implementation plan,improve the efficiency of business operations,and optimize the integration and distribution of enterprise resources.