A Study On The Causes And Countermeasures Of Chinese Dollar Bond Default

Enterprises have sufficient funds to continue to develop healthily,choose financing is an important way for enterprises to obtain funds.However,it is a key problem for the enterprise to choose the proper financing method,control the cost of financing and improve the profit.At present,enterprise financing mainly from the domestic and foreign two aspects.As domestic financing will be subject to government departments,industry regulations,social supervision and other restrictions,the financing needs of enterprises often can not be met.In order to raise funds,many enterprises turned to the direction of foreign financing,resulting in a number of foreign debt.In this context,the number of foreign debt issued by enterprises is increasing,chinese-funded US dollar bonds is one of the important forms,the issuance of chinese-funded US dollar bonds for enterprises to raise funds to provide a new way.As the main body of issuing US dollar bonds is domestic enterprises and foreign subsidiaries of domestic enterprises,its stability is affected by the international financial market.In recent years,US dollar debt has been affected by many factors,such as lower corporate profits,many debts coming due,the deterioration of corporate profits,and the difficulty of refinancing,the occurrence of covid-19 once again aggravated the turbulence in the US dollar bond market,and the default phenomenon in the US dollar bond market gradually attracted attention.In order to deal with the pressure of Chinese capital defaulting on US dollar bonds,the state gradually tightens the supervision on US dollar bonds,standardizing and guiding the use of overseas bond funds issued by enterprises.The development of US dollar bonds is facing difficulties,therefore,it is necessary to analyze the default of Chinese dollar bonds.This paper,taking Taihe Group as a case,mainly explores the causes and countermeasures of chinese-funded US dollar bond default,and analyzes them from the perspectives of internal and external causes.In order to lay a sufficient theoretical foundation for the article,the paper presents the framework of the article in the form of flow chart,and then explores the countermeasures for chinese-funded US dollar bond default on this basis.Specifically,this paper starts with the various policies of foreign debt,based on the issued Chinese dollar bonds to grasp the basic situation of Chinese dollar bonds default.Secondly,through the analysis of Tahe Group issued US dollar debt situation,default process and default results,from internal and external aspects to consider the reasons for the formation of US dollar debt default,the main reasons of internal default are the obvious corporate debt pressure,the exhaustion of capital liquidity and the radical development strategy.External reasons are mainly reflected in the macroeconomic slowdown,domestic housing policy changes,the Federal Reserve to tighten monetary policy.Finally,based on the corporate internal governance of the U.S.Dollar Bond default put forward the corresponding countermeasures,and the U.S.Dollar Bond default recommendations.This study organically combines practice and theory,fully considers the internal and external characteristics of enterprises,and clarifies the factors of dollar bond default and relevant countermeasures,hoping to have certain reference significance for other enterprises with dollar bond default.Therefore,from the perspective of rating agencies,regulatory agencies and enterprises themselves,this paper puts forward suggestions for enterprises to prevent US dollar bond default,hoping that enterprises can pay attention to the changes of external policies and environment in the process of US dollar bond financing,and at the same time,combine the actual situation of enterprises to conduct financing,so as to avoid the risk of default.