| In recent years,with the growing maturity of China’s bond market,bonds have gradually developed into an important external financing tool for enterprises,and a large number of enterprises have issued bonds to obtain funds to maintain their operations or make other investments.However,at the same time,China’s macroeconomic and credit environment has also undergone significant changes,with the problem of corporate bond defaults gradually emerging and the number and scale of bond defaults rising.2021 saw a total of 196 bonds in default in China,involving a total amount of RMB188.139 billion,continuing the characteristics of a large number of defaulted bonds and large amounts involved,and also showing a sharp increase in defaults by highly rated entities In addition to the large number of defaulted bonds and the large amount of money involved,there was also a surge in defaults by highly rated entities and a concentration of defaulted issuers in the real estate industry.The number of defaulted bonds in the real estate industry was 38,with a defaulted amount of RMB34.740 billion.The number of bond defaults in this industry has also drawn the attention of relevant government departments,investors and other real estate companies.It is foreseeable that if the number of bond defaults continues to increase and the scale of defaults involved continues to expand,this will seriously undermine investors’ confidence,disrupt the normal order of China’s bond market and affect the development of China’s capital market in the long run.Therefore,it is particularly important to study the causes and economic consequences of typical bond default cases and put forward targeted preventive measures to help other enterprises in the bond market avoid the occurrence of bond defaults.Based on a review of Pan Ocean Holdings’ bond defaults,this thesis analyses the causes and consequences of Pan Ocean Holdings’ bond defaults,thereby summarising targeted recommendations in the hope of providing inspiration for similar companies to avoid the risk of bond defaults,so as to promote the healthy development of the bond market.This thesis adopts a combination of literature research and case study methods.Firstly,the causes,consequences and preventive measures of bond defaults are analysed through the literature research method to lay a good theoretical foundation for the case study.Then,through the case study method,we explore the causes behind the bond defaults and analyse the consequences of bond defaults on the basis of the development history of Pan Ocean Holdings.The framework of this thesis is divided into five main parts.Based on the research background of corporate bond defaults in China in recent years,the first part clarifies the research significance of this thesis from both theoretical and practical dimensions,followed by a review of previous years’ literature and a summary of the research results of scholars at home and abroad on the whole process of bond defaults.The second part is a theoretical overview.After analyzing and discussing the definition,types,causes and economic consequences of bond defaults,this chapter elaborates on the theoretical basis of bond defaults,thus laying the foundation for the case study in the following section.The third part is a case introduction.Based on the overview of Pan Ocean Holdings,this chapter divides the development history of Pan Ocean Holdings into three stages and presents them in detail according to the characteristics presented in the development process of the company.It then composes the process of Pan Ocean Holdings’ bond defaults and analyses the series of economic consequences caused by its bond defaults to pave the way for further analysis afterwards.The fourth section analyses the causes of Pan Ocean Holdings’ bond default at the level of macro policy and industry environment,the company’s business strategy decisions,financial position and corporate governance.This chapter draws conclusions based on the previous analysis: firstly,there is a direct link between changes in macro policies and the industry environment and bond defaults;secondly,poor business strategy decisions are the root cause of Pan Ocean Holdings’ bond defaults;thirdly,poor financial conditions are the direct cause of Pan Ocean Holdings’ bond defaults;fourthly,bond defaults will have a Fourthly,bond default will have a negative impact on the long-term development of Pan Ocean Holdings.On this basis,this thesis provides some suggestions for debt issuing companies to prevent default risks: firstly,companies should pay attention to the internal and external environment and formulate business strategies prudently;secondly,companies should pay attention to their own financial situation and strengthen capital supervision;thirdly,companies should strengthen corporate governance and improve risk control systems. |
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