Case Study On Bond Default Of State-Owned Enterprises In Coal Industry

Since 2018,the number of defaulted bonds and the balance of defaulted bonds in China’s credit bond market have risen sharply,and the issuers of bond default have gradually shifted from private enterprises to state-owned enterprises,from low-rating bond issuers to high-rating bond issuers,and from orderly to disorderly.In 2020,the defaults of state-owned enterprises’ bonds have intensified market panic,shaken the faith of state-owned enterprises and shattered their aura.At present,China is unswervingly promoting the reform of credit debt market registration system,and credit debt market risks should be paid enough attention to.In this thesis,Yongcheng Coal & Electricity Group Co.,Ltd was selected as the research object for the first time credit debt default occurred on November 13,2020,and the reasons for the default exceeded market expectations were deeply explored from multiple dimensions.This thesis first introduces the theoretical basis of bond default,and reviews the general causes and impact of bond default.And then describes the characteristics of China’s bond default market from five dimensions of time,industry,region,corporation nature and facility ratings.Then,this thesis gives a basic introduction to the operation and financial situation of Yongcheng Coal & Electricity Group Co.,Ltd,and combs the development process of default behavior.Then this thesis from the aspects of macroeconomic,the extent of industry prosperity,the company actual situation,and corporation nature four perspective to analyze the default factors.The main reason of bond default of Yongcheng Coal & Electricity Group Co.,Ltd is the imbalance of corporate debt structure.The debt structure tends to be short term and short-term debt repayment pressure is large.In addition,due to the large amount of funds occupied by related parties,the liquidity of assets is poor,and the serious drag of non-coal sideline production,the profitability of enterprises is poor.Then the external support capacity is not enough to fill the capital vacancy,which eventually leads to the exhaustion of liquidity of Yongcheng Coal & Electricity Group Co.,Ltd.Finally,through the analysis of credit risk early warning model,this thesis finds that the special status of state-owned enterprises is an important reason for rating agencies to underestimate the debt status of Yongcheng Coal &Electricity Group Co.,Ltd.The enterprise nature factor is the main reason for the failure of credit risk rating analysis method of rating agencies and the default of Yongcheng Coal &Electricity Group Co.,Ltd exceeding expectations.On the basis of the above analysis,this thesis summarizes the enlightenment of the default event for issuers,intermediaries and regulatory authorities.The issuer should establish a sound internal risk management mechanism and maintain a reasonable debt structure.For intermediary agencies,rating agencies need to standardize business processes,burst rating bubbles,abandon belief in state-owned enterprises,attach importance to fundamental analysis of enterprises,return credit rating to value analysis,and lead underwriters need to strengthen risk awareness and implement information disclosure responsibilities.For the regulatory authorities,they need strengthen the transparency requirements of information disclosure,promote the construction of debt risk early warning system,unify supervision standards and continue to promote the reform of registration system.