Research On Zhongjin Gold’s Debt-to-equity Swap And Its Implementation Effect

As an effective means of reducing leverage at the macro level,market-based debt-to-equity swap has attracted much attention since its launch in 2016,and has achieved initial results since its implementation.In addition to alleviating corporate debt risks and promoting the adjustment of corporate leverage ratios,the real value of debt-to-equity swaps lies in enhancing corporate governance capabilities.As the core subject and object of market-oriented debt-to-equity swaps,the governance capacity and level of enterprises directly determine the expected returns of shareholders after debt-to-equity swaps,and significantly affect the willingness of debt-to-equity entities to convert to equity.At present,my country’s national debt-to-equity swap projects are mainly concentrated in state-owned enterprises and central enterprises.According to the survey by the National Bureau of Statistics,after the debt-to-equity swap,the business performance of enterprises has been significantly improved.Nearly 80% of enterprises have turned losses into profits,and 20% of them have improved governance.capacity,but the governance effects of most firms are only temporary.Under the guidance of the policy of promoting mixed ownership reform of state-owned enterprises and helping high-quality key state-owned enterprises to "deleverage",many state-owned enterprises have launched debt-to-equity swap projects,which have achieved good results.Practice has shown that under certain conditions,the resolution of corporate debt risks needs to be implemented as soon as possible,and at the same time,attention should be paid to corporate governance capabilities,so as to prepare for the next risk challenge.This paper takes Zhong Jin Gold as the object,and adopts the case study method to systematically study the debt-to-equity swap of Zhong Jin Gold and its implementation effect.On the basis of its own relatively good basic conditions,Zhong Jin Gold has creatively proposed the "market-oriented debt-to-equity swap +high-quality asset injection + supporting financing" in response to the country’s multiple policy calls to reduce corporate leverage and alleviate debt risks.The three-step" strategy is a major and unprecedented breakthrough in the capital market.The study found that the debt-to-equity swap has indeed played a certain role,reducing the debt level of Zhong Jin Gold,improving the company’s poor operating performance and insufficient cash flow,increasing its competitive advantage in the industry,and improving corporate governance.Improvement,equity structure adjustment,continuous improvement of governance mechanism,improvement of investment efficiency,and enhancement of corporate value.However,there are still many problems after the debt-to-equity swap.The problems of insufficient profitability and weak development of Zhong Jin Gold still exist,and the disadvantages are obvious compared with several companies in the same industry.Debt-to-equity swap has brought a certain corporate governance effect to it.After institutional investors were turned into shareholders,the company’s equity balance was improved and the equity concentration was prevented from being too high.The implementation effect of the share conversion is greatly reduced.If Zhong Jin Gold strengthens the structural design and pays attention to the management at the governance level in the future,the corporate value of Zhong Jin Gold will be fully improved.