| In recent years,the Central Committee of the Communist Party of China(CPC)and The State Council have called for efforts to strengthen supply-side structural reform,strengthen constraints on the assets and liabilities of soes,and actively yet prudently promote market-based and law-based debt-equity swaps to improve the quality and performance of enterprises.Since 2019,the National Development and Reform Commission(NDRC)has jointly issued relevant policies with various departments,including expanding channels for private capital to participate in market-oriented debt-equity swaps and promoting asset trading of bond stocks.The debt-for-equity swap in the late 1990 s was regarded as policy-based debt-for-equity swap,and the specific implementation objects and programs were mainly led by the government.However,this round of debt-to-equity swaps is completely different from the last policy-based debt-to-equity swaps.The enterprise selection,implementation plan,pricing mechanism and exit mechanism of this round of debt-to-equity swaps are completely determined by the market.The iron and steel industry is a highly cyclical industry with high leverage and is obviously affected by policies.Especially in the economic downturn cycle,the operation pressure of iron and steel enterprises is great,so deleveraging is imperative.Valin steel is the first local state-owned enterprise to implement market-oriented debt to equity swap,and the combination of market-oriented debt to equity swap and restructuring has great research significance.Based on the in-depth analysis of the motivation and economic consequences of the market-oriented debt to equity swap of Valin Iron and steel,this thesis draws relevant conclusions by using the methods of case study and comparative analysis,and puts forward relevant countermeasures and suggestions,such as reasonably selecting the target enterprise of debt to equity swap,exploring and innovating the debt to equity swap mode,strengthening the follow-up management of debt to equity swap,following the market-oriented principle,improving the pricing mechanism and exit mechanism. |
