Research On The Operation Mode And Performance Of Market-oriented Debt-to-equity

In recent years,the growth rate of China’s debt scale has been higher than that of nominal GDP,the leverage ratio of the real economy has risen rapidly,the profit level has dropped significantly,the bad loan ratio of banks has increased substantially,the accumulation of financial risks has intensified,and the macroeconomic downward pressure has increased.In October 2016,Guidance on Market-oriented Debt-to-Equity Conversion of Banks,issued by the State Council,encourage banks and companies to adopt market-oriented methods and adhere to the principle of legalization in implementing debt-to-equity,gradually reducing the leverage ratio,optimizing the structure of corporate governance,in order to help good development prospect but a temporary liquidity crisis of quality enterprises to survive,We will effectively implement the country’s supply-side structural reform decisions and arrangements.In this context,Zhongjin Gold innovatively designed the mode of "equity replacement mode + high-quality asset injection + supporting financing" and completed the market-oriented debt-to-equity in three steps,which is a typical case of debt restructuring in the capital market and serves as a good reference for enterprises intending to implement market-oriented debt-toequity.Taking Zhongjin Gold as the research object,this thesis systematically combs the relevant literature and theories,amply introduces the case background and implementation process,flexibly uses financial index,event study,comparative-research and other method,and deeply analyzes the motivation,operation mode,performance and risk of market-oriented debtto-equity,The conclusions of this thesis are as follows: In terms of motivation,market-oriented debt-to-equity and merger and acquisition policies are favorable,the capital structure adjustment and enterprise development needs are urgent,which urges Zhongjin Gold to implement debt-to-equity.In terms of operation mode,Zhongjin Gold creatively designed a market-oriented debt-to-equity operation mode,which fully embodies the marketization characteristics in six aspects: participants,capital sources,transaction structure,pricing mechanism,shareholder rights and exit mechanism.In terms of performance,the desired improvement has been achieved,the excess yields positive all the time,the cumulative excess yields sustained growth,stock prices boost effect is obvious,the company asset-liability ratio has fallen dramatically,debt risk,profit ability,operation ability,growth ability and cash liquidity also significantly enhanced;In terms of risks,the risk of bankruptcy of the company is reduced,the level of governance is improved,and the steady operation and healthy development are strongly guaranteed.Finally,this thesis summarizes some revelations based on the research conclusion of market-oriented debt-equity project.