Causes And Influences Of Bond Default Events Of Holding Enterprises

In my country’s current financial system,the bond market plays a vital role.Since the resumption of issuance of government bonds in 1981,my country’s bond market has experienced rapid development,especially since 2013,the size of the bond market has expanded rapidly,and it has become the second largest bond market in the world.However,in recent years,there have been frequent default events in my country’s bond market.Both the number of defaulted bonds and the number of defaulted entities involved have risen sharply,and there is also a trend of defaults from private enterprises to state-owned enterprises.It has become an important subject of bond default events,which seriously hinders the healthy development of my country’s bond market.Therefore,how to effectively identify and prevent corporate credit risks and reduce the impact of default events on companies,investors and the market has become the focus of everyone’s attention.In terms of research concept,this paper first summarizes the form and general reasons of bond default,and then introduces the current situation of bond market default in my country from two aspects: the trend of the number of bond default events in recent years and the changes in the nature of the defaulting entities..Secondly,the article introduces Brilliance Auto Group Holdings Co.,Ltd.from the three aspects of the company’s basic situation,operating situation and financial situation,and then further introduces Brilliance Auto Group’s default process and subsequent arrangements.Next,this paper analyzes the default of Brilliance Auto Group from the aspects of macroeconomic influencing factors,auto industry factors,and internal factors of Brilliance Auto Group,and uses the method of Z-score model to analyze the default of Brilliance Auto Group before the occurrence of bond default events.The financial data is calculated,and the bond default events of Brilliance Auto Group are compared with those of other holding companies,and the characteristics of bond defaults of holding companies and the similarities and differences with non-controlling companies are analyzed and summarized.Then,this paper analyzes the impact of Brilliance Auto Group’s bond default from four aspects: investors,companies,markets and supervision.Finally,this paper summarizes the causes and effects of Brilliance Auto Group’s bond default from the company level,market level,and regulatory level,and discusses the characteristics of holding corporate bond defaults and the differences compared with non-holding structure corporate bond defaults.It sorted out and put forward reasonable suggestions for the supervision and management of China’s bond market,especially the supervision of holding companies.