| Since the continuation of China’s structural deleveraging policy,the real estate sector,a typical asset-heavy industry closely linked to the economic cycle and industry policies,has experienced its first debenture bonds default in 2018 within the deleveraging cycle.Since then,these events have occurred frequently.As the well-known real estate enterprise which once ranked among the top 10 in the industry,China Fortune Land Co.,Ltd.(CFLD Co.)was deeply in the bond default crisis after it first announced the default of debenture bonds in 2021,which were once more than100 billion.Its large scale of default and difficult bonds resolution process undoubtedly serve as a warning to other bond market participants.It is foreseeable that as China attaches greater importance to the construction of the social credit system,Debenture Bonds,as a credit-based and more flexible means of raising funds,will not be used less because the number of issuers have fallen into default in recent years.Therefore,it is imperative to optimize and improve the creditor protection in advance,maintain stability in the process,and improve the effect after the event.This paper takes the deleveraging cycle’s impact on the real estate industry as the main logic and the research path of the literature review.On the basis of a strict definition of the types of credit bonds and the concept of bond defaults studied in this paper,and the existing mainstream classification of creditor protection mechanisms in China’s bond market,the selected cases are analysed in the light of leverage cycle theory,principal-agent theory and incomplete contract theory.This article summarizes the impact of this deleveraging policy before and after on real estate credit bond defaults,and based on the successive debenture bonds defaults of the well-known domestic real estate enterprise of CFLD Co.,and puts forward suggestions on strengthening the protection of creditors from different participants in the bond market,with a view to more effectively and comprehensively protecting the interests of bond investors,and also providing evasions for other domestic real estate enterprises of resolving the risk of debenture bond. |
