Research On Bond Default And Risk Control Of Taihe Group

Under the background of rapid development of Chinese economy,the bond market has also experienced nearly 40 years of development,becoming an important component of the capital market,also with the rapid development of the bond market,the scale of the bond market is gradually expanding.But compared with the overseas bond market,our bond market seems immature.Until 2014,when the rigid payment was broken and the first substantial bond default occurred.After the first bond default case appeared,the default situation increased year by year,the frequency accelerated and the scale expanded.In 2018,125 Chinese corporate bonds defaulted,with a default value of 120.9 billion yuan.In 2019,the amount and number of defaults rose sharply,to 183 and 148.3 billion yuan,respectively.In 2020,defaults reached 164.7billion yuan.In 2021,the amount of default was 146.5 billion yuan,and the number of defaults was 140.It can be seen that the amount of bond default is a rising trend year by year.This paper introduces Taihe Group bond default event as the research object,combined with the current situation of the bond market,so as to conduct research and analysis,and obtains the research purpose of this paper.This paper firstly sorts out the theories and domestic and foreign literatures related to corporate debt default,and constructs the analysis framework of bond default from the characteristics of bond default risk,default factors and default impact.Taking Taihe Group’s debt default as an example,THIS paper introduces Tai HE Group and analyzes its default process,which is manifested as slow sales collection less than expected,concentrated maturity of bonds,difficulty in attracting investment,and finally default.Then the Z-score model was used for risk assessment.The causes of default are systematically analyzed from both internal and external aspects.The external factors are the influence of macro environment and industry environment.The internal factors are comprehensively analyzed from corporate governance,strategy,operation and financial analysis.Collectively,they are frequent changes of senior executives,aggressive expansion,slow payment recovery,concentrated maturity of bonds,and high degree of asset restriction.Finally summarize the Tahe Group bond default in the enlightenment.The enterprise itself should establish a financial early warning mechanism,formulate a reasonable and sustainable financial strategy,and discover the company’s financial situation in time.Strengthen the governance of the company’s internal environment,formulate a reasonable financing plan,optimize the financing structure,reduce excessive dependence on external financing,so as to improve the corporate strategy to prevent bond default;Bond investors should cultivate their own awareness of investment risk,enhance their risk identification ability and form their own investment ideas;The bond market should propose unified supervision standards,strengthen the information disclosure system,and improve the default disposal mechanism,so as to improve the control of bond default risk.The suggestions obtained through the case analysis will play a role in the development of the bond market,risk control,improvement of the regulatory system and construction of the bond market environment.It will also play a reference role for the related enterprises facing the risk of debt default.