A Case Study On The Default Of Ziguang Group Bonds

In recent years,with the continuous development of my country’s bond market,bond financing has become a financing option for many companies.With the expansion of bond financing,many potential risks are gradually exposed.In 2014,in my country’s public bond market,the first incident of debt default occurred.After the "11 Chaojian Bond" expired,it was a substantial default because it could not be repaid in full.Since then,bond defaults have frequently occurred in my country’s bond market.From the point of view of the main issuers of bonds,private enterprises occupy the majority,but in the past two years,many bonds and enterprises with AAA credit ratings have defaulted on their debts,including many state-owned enterprises and enterprises.School-run enterprise.Tsinghua Unigroup is a high-tech company integrating chip design,manufacturing and cloud network business.Its industry is the semiconductor industry strongly supported by the state,and it is a school-enterprise founded by Tsinghua University.In November 2020,the "17 Ziguang PPN005" issued by Ziguang Group defaulted on its bonds.Since then,many bonds previously issued by Ziguang Group have also defaulted on their debts.Based on the above background,through the method of case study,the reasons for its default are analyzed from the external and internal levels,which not only supplements the theory of my country’s bond default,but also has a certain role in promoting the healthy development of my country’s semiconductor industry and bond market.First,through the analysis of the current situation of Tsinghua Unigroup’s default,the reasons for its default are explored from the external and internal levels.The default factors at the external level are mainly the downturn of the macro economy,the deterioration of the financing environment and the falsely high credit rating;the default factors at the internal level are: The company’s development strategy is radical,the financing structure is unreasonable and the corporate governance system is not perfect;after analyzing the financial situation,it is found that the solvency,profitability and cash flow situation are not good.Secondly,by summarizing the reasons for the analysis,it is concluded that the factors at the internal level of the company are the decisive factors that lead to the bond default of Ziguang Group,and the external factors only play a certain role,and the deterioration of the financial situation is the combined effect of these factors.The result is also the direct factor that led to the bond default of Ziguang Group.Finally,according to the conclusions drawn from the analysis of Ziguang Group’s breach of contract,targeted suggestions are given to different entities.For regulators,it is necessary to improve relevant policy guarantee mechanisms and improve the supervision mechanism of rating agencies;for companies that issue bonds,they should formulate reasonable corporate strategies,broaden corporate financing channels,establish financial early warning systems and improve corporate governance systems;for investors,should enhance their risk awareness,actively learn investment knowledge,and improve their professional investment capabilities.