Research On The Causes And Prevention Of Default Of Brilliance Auto Bond

Enterprises raise funds through financing in the market,which can expand the effective scale of investment and is conducive to the long-term operation of enterprises.Bond financing is a kind of debt financing.It is undoubtedly the most suitable financing channel and investment mode for the enterprises that want to speed up the financing speed and the issuers are non joint stock companies,and the investors who only have the demand of income and principal under the aura of "rigid cashing".However,the unwritten rule of "rigid cashing",which was born in China’s trust market,is obviously against the long-term healthy development law of the market.Therefore,if the market institutional framework is gradually improved and the reasonable standards of issuance and investment access are gradually relaxed,rigid cashing is not allowed.In 2014,"11 super day bond" declared a default,which became the breakthrough of "rigid cashing".Since then,China’s bond market has begun to develop in a rational and healthy direction.In the next few years,bond defaults occurred one after another.In 2015,the overcapacity industry caused a large number of state-owned enterprises to default due to operational difficulties.In 2018 and 2019,deleveraging triggered many private enterprises to default on bonds.In2020,many state-owned enterprises with the highest rating frequently default on bonds,causing investors to flinch from the bond market.Therefore,it is a hot topic to study the causes of default of high-grade state-owned enterprise bonds and the impact on similar enterprises.This paper will first systematically organize the related documents of bond default,and summarize the research status of the domestic and foreign research on the causes,warning and prevention of bond default through literature research.Secondly,the paper makes a logical study on the concepts and theories related to bond and bond default,and summarizes the characteristics of the current bond market by statistical analysis.Thirdly,the paper chooses Huachen Automobile Group Holding Co.,Ltd.,which has recently occurred bond default,as the research object of case study method,studies the external operating environment and internal corporate governance and financial situation of the enterprise,and analyzes the internal and external causes of bond default and the impact.Finally,according to the impact,the paper puts forward corresponding preventive measures to avoid the phenomenon that the "high quality" report of the enterprise misleads the relevant individuals or groups to make false judgment,and plays a warning and preventive role for similar enterprises,so as to ensure the stable and healthy operation of the bond market.