A Study On The Default Event Of Yongmei Holding Credit Debt And Its Enlightenment From The Perspective Of Investor Protection

With the gradual expansion of the bond market,investor protection is increasingly important.Over the years,China attaches more importance to stock investors while ignoring the investor protection of the bond market,resulting in frequent bond defaults that not only deceive investors but also make investors bear huge losses,which severely undermines the confidence of investors.Based on the perspective of investor protection,this paper takes the credit default event of Yongmeil Holdings as a case to explore the issues related to investor protection during the issuance and duration of the bonds.Based on the illegal and irregular problems of Yongmei Holdings before its bond issuance and during its duration,the author points out that there are some problems in our investor protection system,such as imperfect information disclosure system,ineffective credit rating function,blocked relief system and insufficient debt repayment guarantee mechanism.Based on the analysis and research of the above issues,this paper believes that in terms of protecting the interests of investors,first of all,the governance of corporate information disclosure should be implemented.Secondly,the credit rating should be gradually changed from issuer payment to investor payment,so as to strengthen the risk awareness of investors,and restrict the rights of all parties through the bondholder meeting system,so as to form an effective linkage with the trustee system.At the same time,attention should be paid to the improvement of debt repayment security system,so as to accurately express investors’ demands,safeguard their due rights and interests,and promote the long-term and healthy development of the bond market.