A Study On The Risk Control Of Bond Default Of Chuying Agro-Pastoral Group

Since 2014,bond default cases has occurred in China at the first time.In the 13 th five year plan period,as Chinese GDP is in the growth conversion stage,there are also measures to tighten the currency and pay attention to credit,and bond default began to enter the high incidence period and normalization.In order to prevent the further accumulation of default risk in the bond market,the research on bond risk control plays a important role that is good for identifying and dealing with enterprise credit risk.This thesis selects the second domestic issuer Chuying Agro-pastoral Group delisting at par value as a case object,study the bond risk control defects and how to effectively prevent bond risk.This thesis uses the literature research method,case study method and inductive reasoning method,launches on the policy basis related to internal control,and combines the agency theory and broken window theory.Firstly,it introduces the enterprise background,bond issuance and default of Chuying Agro-pastoral Group.Secondly,it combs the current situation and problems of corporate bond risk control from an internal perspective,and analyzes the causes behind the defects of risk control.After determining the strategy of expansion and diversification,the company relies on debt financing in the choice of financing methods.However,in recent years,the financing environment has been affected by the contraction of credit,which has led to an increase in the difficulty of corporate financing.At the same time,the main animal husbandry is affected by the pig breeding cycle and classical swine fever,resulting in reduced operating income and huge short-term debt pressure,which further superimposes the risk of corporate bonds and seriously affects the normal operation of the company,forming a vicious circle,resulting in substantial breach of bonds.Finally,according to the summarized causes of risk control defects,aiming at the case of default of Chuying Agro-pastoral Group bonds,the thesis suggests that the bond issuers should strengthen the awareness of financing risk control and improve the financing risk early warning mechanism and financing process.Family controlled enterprises should also pay attention to whether the equity structure achieves the effect of checks and balances,ensure that the supervision functions of independent directors and internal audit departments are brought into play,and avoid unnecessary interest losses caused by arbitrary decisions.At the same time,the management of accounts receivable should pay attention to enhancing the efficiency of capital turnover to reduce the risk of debt default.This study will help China’s private enterprises to provide useful ideas on the control of bond default risk,and also hope that the bond issuers will pay more attention to and prevent bond default.