| The bond market is an important part of Chinese capital market.It plays a variety of important roles in the national financial system,such as supporting the development of the real econoours and optimizing the allocation of resources,providing a large amount of funds for our country’s economic construction.With the expansion of the scale of our country’s bond market,the enrichment of layers and the continuous emergence of credit risks,bond default events also occurred frequently.On March 7,2014,the first bond default event occurred in the domestic credit bond market—the "Super 11 day debt" defaulted,and the expectation of rigid payment in the bond market was broken.Since then,the domestic bond market has experienced several rounds of defaults.On October 24,2020,Brilliance Group failed to raise the principal and interest of the "17 Huaqi 05" bond on time,which constituted a material breach.Brilliance Group is a state-owned enterprise with the character of Subsidiaries perform stronger.Its bond default is both typical and special,and it is worthy of in-depth study.This thesis mainly uses case analysis and literature research to study the causes of the default of "17 Huaqi 05" bonds of Brilliance Group and its preventive countermeasures.First,sort out the beginning and end of Brilliance Group’s "17 Huaqi 05" bond default event.then,analyze the reasons for Brilliance Group’s bond default from the macro and micro perspective.On this basis,the risk prevention countermeasures for bond default are proposed from the two aspects of the bond issuer and the supervision system.Risk prevention measures.Through research,it is believed that the internal factors of enterprises are the main causes of bond defaults,including poor profitability and refinancing pressure,combined with factors such as weak economic development and industry competition.For groups with a weak parent company and strong subsidiary companies,if the parent company has poor capital collection ability,and the scale of its restricted assets is large and exists legal risks,the difficulty of refinancing will aggravate the debt repayment pressure of the enterprise.The risk prevention of bond default should start from two aspects: strengthening the internal management of the enterprise and improving the market supervision system.The full text of this thesis is divided into five chapters: the first chapter is the introduction,which mainly includes the research background and significance,literature review and research framework.The second chapter is the introduction of Brilliance Group’s bond default cases,mainly introducing the basic situation of Brilliance Group and the process of its bond default named “17 Huaqi 05”.The third chapter is the case analysis of Brilliance Group’s bond default,which mainly analyzes the causes of Brilliance Group’s bond default,including economic environment,financial policies and industry development from the macro-perspective,as well as independent brands and debt structure from the micro-perspective.The fourth chapter is the preventive measures of Brilliance Group’s bond default,and the preventive measures against the bond default risk are put forward according to the causes of the Brilliance Group’s bond default.The fifth chapter is the conclusion,summarizes the full text,and looks forward to the development prospect of our country’s bond market in the future. |
