Research On The Causes And Countermeasures Of Yango Group Co.,Ltd.Bond Default

Since 2014,with the continuous development of the bond market in our country,the phenomenon of bond default occurred frequently,and the number and amount of default have increased gradually.Among the default subjects,the credit risk exposure of real estate enterprises is particularly prominent.Some enterprises have disorderly expansion of capital in the early stage,rapid weakening of cash flow under the pressure of economic downturn and other factors,and finally lead to bond default.This phenomenon has a serious adverse impact on the healthy development of Chinese bond market.In view of this,this paper selects a typical real estate enterprise,Yango Group Co.,LTD.(hereinafter referred to as "Yango"),which defaults on its bonds in 2022,to conduct a comprehensive analysis of the causes of its bond default and put forward countermeasures and suggestions.First of all,this paper reviews the default event of Yango bond,introduces its bond issuance situation,default process,follow-up treatment and main impact.Secondly,from qualitative and quantitative perspectives,this paper deeply analyzes the causes of bond default of Sunny City.Through qualitative perspective,it finds that:from the macro level,the slowdown of macroeconomic growth and the tightening of financing channels have an impact on the emergence of corporate bond default;From the perspective of industry,the influence of industry regulation policy and industry competition increase the possibility of bond default of Yango.From the perspective of enterprises,factors such as aggressive strategic expansion,frequent changes of senior executives and large amount of external guarantee will affect the operating conditions of enterprises and aggravate the liquidity dilemma.The poor solvency,profitability and cash flow of enterprises will directly lead to the liquidity exhaustion of Sunny City and the bond default.From the perspective of market rating,inflated market rating will cause the real credit level of high-risk enterprises to be underestimated,and bond default is more likely to occur.From a quantitative perspective,Z-score model and KMV model are used to analyze and evaluate the financial risk and default risk of Yango,comprehensively analyze the reasons for bond default of Yango,and directly reflect the level of default risk of Yango.Finally,based on the causes of bond default in Sunny City,countermeasures of bond default are proposed from the perspective of enterprise main body and market supervision.Enterprise main body should reasonably plan development strategy,adjust corporate debt structure,strengthen operation and management,and improve the early warning system of corporate bond default.Market regulators should strengthen bond market supervision,improve the credit rating system and improve the investor protection system,and enterprises and market regulators should make joint improvements to deal with bond defaults.The frequent bond defaults in the real estate industry have caused serious impacts to enterprises,investors and the bond market.As a hundred-billion-level enterprise in the real estate industry,Sunny City defaulted on its bonds in 2022,which has the common characteristics of defaulting enterprises,so it is typical and timely to conduct a case study on this.In this paper,the Z-score model and KMV model are used to analyze the causes of bond default of Yango from a quantitative point of view,and the countermeasures of bond default are proposed from the two aspects of enterprise and market supervision,providing experience for Yango and other similar real estate enterprises.