Case Study On Bond Default Of Yongmei Group

Since 2017,economy has shifted from high-speed development to high-quality development,and the economic development has entered a new normal.Under the influence of supply-side structural reform,green development concept and the decline of government guarantee capacity,periodic state-owned enterprises with heavy pollution,such as coal,have poor operating performance and face greater pressure to fulfill their commitments.In the case of high default risk of state-owned enterprises,bond issuing institutions still give the "green light" to them,resulting in bonds with high credit risk flowing into the market,and eventually bond default events occur.However,the bond default of state-owned enterprises will not only release the signal of the credit decline of state-owned enterprises to investors,but also affect the government credit,and will directly affect the stability of the regional or even national credit market of state-owned enterprises.Therefore,it is necessary to conduct a detailed and in-depth study on the causes of bond defaults of state-owned enterprises.In view of this,this thesis focuses on the bond default event of Yongmei Group,introduces the beginning and end of the bond default event of Yongmei group and its subsequent impact.Based on previous studies,this thesis analyzes the reasons for the bond default of Yongmei Group from multiple perspectives by using literature research method,case analysis method,financial index analysis method and model analysis method.Firstly,the influence of macro policy environment,coal industry development status and government guarantee capacity change on Yongmei Group is analyzed.Further,yongmei Group’s own operation and development situation is analyzed.Through the study of bond default cases of yongmei group,the following conclusions are drawn:(1)macroeconomic uncertainty and coal industry capacity-cutting reform have a great impact on yongmei group’s operating conditions;(2)There are some problems in Yongmei Group,such as false financial information disclosure,weak solvency and profitability,which result in high risk of debt default;(3)The increasing financial pressure of the government reduces its ability and willingness to provide guarantee for state-owned enterprises and affects the solvency of state-owned enterprises;(4)Excessive reliance on implicit government guarantee intensifies the lack of independence of bond issuing institutions and further weakens their external regulatory role,which provides necessary conditions for bond issuance with high credit risk and ultimately leads to bond default events.Based on the above analysis,suggestions are put forward from the perspectives of bond issuer,regulatory authorities,related institutions and investors.First,creditor’s rights issuers should take the initiative to strengthen internal control,optimize capital structure,promote reform by innovation,improve business performance;Secondly,bond related institutions should standardize the work process,maintain independence and strengthen the role of external supervision;Third,the regulatory authorities should improve the regulatory system,release market risks reasonably,and improve the default disposal system;Fourth,investors should break the rigid thinking,learn financial knowledge,strengthen the awareness of risk prevention.