Study On Causes And Countermeasures Of Bond Default Of Oceanwide Holdings Group

Our bond market is developing rapidly.By the end of 2022,China’s bond market stock stood at 141.31 trillion yuan,the second largest in the world.However,under the policy of deleveraging and economic restructuring in the "three removal,one reduction and one compensation",the risk of corporate bond default is increasing.From the "capital management of the new regulations" issued,bond default gradually showed a "normal" trend.Private enterprises,which used to rely on a large amount of loans,cannot quickly adapt to the new situation such as credit contraction and financing policy tightening,resulting in a sharp increase in their debt repayment pressure.Therefore,private enterprises account for a large proportion both in terms of default subject and default scale,and are the hardest hit areas of bond default.In this context,Oceanwide Holdings,a private enterprise in real estate and finance,announced on August 30,2021 that it failed to pay the current interest of "18MTN001" bond on time,which constituted a material default and triggered the cross-default clauses of other bonds.In the part of causes of bond default,this paper analyzes Oceanwide Holdings’ four financial indicators,cash flow and equity pledge of major shareholders,and combines with Z-score model to conclude that Oceanwide Holdings has problems such as weak debt paying ability,low operating capacity and high equity pledge risk.Then this paper from the macro factors,industry factors,credit rating,enterprise internal environment and other aspects of the analysis,to get the specific main reasons.Macro factors include macroeconomic downturn,financing policy tightening and so on;Industry factors include the real estate industry affected by the epidemic and strong control,the trust industry under strong supervision,the insurance industry and the comprehensive reform of auto insurance;Credit rating includes rating information distortion,lag,etc.;The internal environment of enterprises includes insufficient solvency and weak internal governance due to excessive expansion.In terms of prevention suggestions,this paper puts forward relevant countermeasures and suggestions from enterprise managers,bond market regulators and bond investors based on the deep-level causes of Oceanwide Holdings.Enterprise managers should reasonably control the expansion speed,strengthen the internal governance of the company and enhance the transparency of information disclosure,so as to restore the confidence of investors and avoid the "hollowed-out growth" of enterprises.Bond market regulators can consider requiring enterprises to adopt dual rating mode for rating,so as to increase the fairness and transparency of credit rating.Bond investors should pay attention to the protection clauses in bond contracts and cultivate rational investment consciousness so as to improve the ability to identify risks and protect their rights according to law.