Research On The Financial Effect Of CSSC Holdings Market-oriented Debt-to-equity

In recent years,the leverage ratio of China’s non-financial corporate sector keeps rising,the management level and operating efficiency of some enterprises remain low,and the debt scale keeps expanding,which will not only aggravate the debt risk of enterprises,but also may cause regional financial risks.Therefore,actively and prudently reducing the leverage ratio is the inevitable choice of the problem,which is an important part of serving the real economy,preventing and controlling financial risks,and promoting the healthy development of economy and finance.To this end,in October 2016,the state council issued the "opinions on actively yet prudently reducing corporate leverage ratio" and its annexes,actively promoting market-oriented debt-to-equity swaps from the policy perspective as a key means to reduce corporate leverage ratio and solve corporate financial difficulties.This paper selects the case of CSSC Holdings market-oriented debt-to-equity swap of a large state-owned listed company as the research object and makes an in-depth analysis of the financial impact of the market-oriented debt-to-equity swap on enterprises.Firstly,this paper introduces the research background and significance,combs the domestic and foreign research literature,summarizes the research ideas and methods,contributions and shortcomings of the paper,and expounds the basic connotation and relevant theories of market-oriented debt-to-equity swap.Then on the basis of the above launched CSSC Holdings market analysis of the case of debt,mainly includes the following contents: one is from enterprise financial situation need to be improved,enterprise financing difficult problems,and actively respond to a nation called on three angles introduced the marketization of CSSC Holdings implementation of debts into shares,the second is analyzed CSSC Holdings into shares in the debt of the implementation of the main body,the application of operation mode and related implementation process.Then,from both positive and negative perspectives,this paper focuses on the financial indicators and financial behavior as the entry point to deeply discuss the financial impact of the implementation of debt-equity swap on enterprises by CSSC Holdings.Finally through the above study found that CSSC Holdings operating principle in the process of the implementation of market-oriented debt convertible is applied proper,operation pattern with multiple requirements,during the course of the project in the implementation of corporate finance has a dual effect,there are still some deficiencies in implementation plan,and then draws the following enlightenment,subsequent enterprises in the implementation of marketization of debt turn shall formulate perfect implementation plan,and to establish a long-term mechanism to realize the sustainable development.This paper studies the case of debt-equity swap in the marketization of CSSC Holdings,which is helpful to sort out the whole process of debt-equity swap in the marketization of CSSC Holdings and show the characteristics of this round of debt-equity swap.It will provide useful reference for other enterprises of the same type who want to relieve financial stress through market debt-equity swap.It is conducive to the continuous improvement and optimization of market-oriented debt-to-equity swaps by relevant departments in accordance with practice and application,so as to promote orderly supply-side structural reform and comprehensively improve the efficiency and level of serving the real economy.