The Cause And Countermeasure Of Default On The Bonds Of Local State-owned Enterprises

Are rising in the progress of China’s bond market,the market mechanism increasingly perfect,but since 2014,the multiple occurrences of bond defaults,though for basic market economic law,the capital market gradually into a mature stage,default is inevitable phenomenon,however,the waves of multiple defaults constantly raise the amount of bond defaults,expand the scope of defaulting subjects,and gradually extend from private enterprises to state-owned enterprises,the "rigid payment" bond payment expectation of state-owned enterprises in the past has been strongly impacted,while the state-owned enterprises defaulting on their bonds all have two characteristics: on the one hand,they are affected by the macroeconomic downturn,and are in the stage of supply-side structural reform,and the industry is cyclical.On the other hand,the business condition of enterprises is poor,the profitability is low,and the credit risk of bonds does not match the credit rating.The credit bond market has long become the focus of many parties due to the repeated waves of private enterprise bond defaults.Today,bond defaults by central and local stateowned enterprises have become common,and some state-owned enterprises have become the focus of rating downgrades.Therefore,the risk of default of state-owned enterprise bonds urgently needs pre-control measures.So,why do companies have the risk of debt default? How to manage the risk of debt default? And how to deal with events that may develop into a wave of debt defaults? These are all serious issues that need to be urgently considered in the current bond market.Taking the bond default event of Yongmei Group as an example,this paper conducts research from the perspectives of macroeconomic environment and micro-enterprise operation,summarizes the reasons for its default,analyzes the impact of its default from the market level,and proposes targeted governance countermeasures.The bond default case of Yongmei Group is typical and representative,and as the fuse of this credit storm,it has caused an impact on the primary and secondary markets,showing that the credit risk of bonds has gradually spread from public-private joint venture state-owned shareholding enterprises to state-controlled enterprises.Studying the bond default events of Yongmei Group has certain warning significance for investors and some weakly qualified state-owned enterprises,and is conducive to the prevention and handling of bond default events at the regulatory level.