A Case Study Of Bond Default Of Yango Group

Under the background of expanding the depth and breadth of the reform in the financial field and the prominent effect of the financial service to the real economy,the size of the bond market as one of the financing instruments has ranked the second in the world.However,with the growing size of the bond market,bond defaults occur frequently,and there is a tendency that corporate bond defaults tend to concentrate on real estate enterprises.In particular,in recent years,affected by factors such as sales market saturation and epidemic impact,since 2020,highquality and high-grade real estate enterprise bonds such as Taihe Group,Blu-ray Development,and Yango Group have defaulted successively.Therefore,at the present stage,it is of great significance to study the debt default of real estate enterprises,which is not only related to the future survival of real estate enterprises,but also affects the smooth operation of market economy.Therefore,this thesis chooses Yango Group,which has defaulted on its debt in 2022,as the research object.Taking a combination of various methods,this thesis focuses on the reasons for the bond default of Yango Group,and gives some reasonable suggestions at the end of the thesis.This thesis is divided into five chapters.Firstly,from the research background and significance,this thesis simply explains the importance of studying the bond default of Yango Group.In addition,from the three aspects of bond default,disposal and prevention,this thesis reviews the literature of related scholars,and explains the research methods,innovation points and deficiencies of this thesis,as well as the concept definition,relevant theories and models related to this thesis.On the basis of the "financial distress theory","information asymmetry theory","bond default theory","real estate related financing theory" and "F score model theory",further analysis of real estate enterprise bond default cases.Secondly,this thesis introduces the enterprises of Yango Group in turn,the whole process of corporate bond default and the disposal methods after default,and focuses on the particularity of the real estate industry.Thirdly,it analyzes the causes and consequences of bond default of Yango Group from macro and micro perspectives.The macro reasons include complex economic environment,strict regulation of real estate policies and inconsistent rating results of credit rating agencies.Micro reasons include high debt under rapid development,insufficient early-warning mechanism of financial risk within the group,too concentrated time of bond redemption and frequent changes of group management personnel.Among them,in the analysis of the internal financial risk early warning mechanism of the subsection,mainly adopted empirical research,through the financial risk early warning model to draw conclusions.The consequences at the macro level include the destruction of the bond market and the impact on the macro economy;at the micro level,the short-term market reaction is obvious and the stock price fluctuates violently.The company’s equity is damaged,investors lose confidence and subsequent financing setbacks,capital pressure becomes greater.Finally,through the analysis of the case of bond default of Yango Group,this thesis draws the following conclusions:(1)For Yango Group,it is necessary to develop flexible development strategy,prudently expand the scale of debt,optimize long-term and short-term financing and attract and train professional talents;(2)For the regulatory agencies,it is necessary to improve the credit rating system,information disclosure system and strengthen supervision;(3)For real estate enterprises,the development of strategies should adapt to national policy changes,strengthen risk prediction and identification and pay attention to financial crisis early warning.Thus promote the bond market stable development,promote the healthy operation of real estate enterprises.