Study On The Causes And Governance Of Bond Default Of Hainan Airlines Holding Co.,LTD

The ’ 11 Chaori Debt ’ default was the first major bond default in China.Since then,the number of bond defaults in China has increased dramatically,including the defaults of several large state-owned enterprises and high credit rating leading enterprises.Hainan Airlines Holdings Co.,Ltd.is one of the four major airlines in China.From the release of the first ultra-short-term financing bonds in 2019,to February 24,2021,all existing bonds defaulted and the rating was all C.At the end,a total of 11 substantive bond defaults occurred,followed by a strategic restructuring by ’ Fangdaxi ’.In this context,this thesis believes that the analysis of the causes of HNA Holdings ’ bond default is conducive to the subsequent operation and supervision of HNA Holdings and other listed companies,providing governance suggestions for the sound development of the bond market,and helping enterprises and markets to optimize and adjust.In view of the causes of bond defaults of Hainan Airlines Holdings Co.,Ltd.,this thesis starts from the internal and external levels of the company.At the external level,it analyzes the impact of the economic downturn on bond defaults under the macroeconomic situation,the competition in the same industry in the development of the industry,the substitution effect of the rapid development of the road network,and the impact of rising international oil prices on bond defaults of Hainan Airlines Holdings Co.,Ltd.;at the internal level,the factors affecting default are obtained by analyzing the expansion strategy of HNA Holdings,the operating capacity,profitability,solvency and the comparison with the industry average.Then it selects financial related indicators and non-financial related indicators for factor analysis,and uses Logit regression model regression analysis after obtaining principal component factors.By sorting out and summarizing the financial data of18 financial related indicators and 6 non-financial related indicators in the last quarter of the maturity date of 36 bonds issued by HNA Holdings,18 financial related indicators are concentrated into 5 key factors,and 6 non-financial indicators are concentrated into 2 key factors.The relevant scores F1-F7 are obtained,which are used as independent variables for Logit regression.It is found that F4 will have a significant negative impact on whether to default.Finally,according to the analysis of the causes,the countermeasures are put forward to help the bond market develop healthily.Enterprises should strengthen risk control,optimize debt structure,introduce strategic investors,improve information transparency,scientifically formulate strategic planning,and abandon short-term debt and long-term investment;regulators should improve rating efficiency,improve information disclosure system and optimize bond rating model.Investors should make full use of the information that can be collected in order to make prudent choice and rational investment.Rating agencies need to maintain rating independence and do a good job in bond rating.