Case Study On Bond Default Of Taihe Group

Compared with the international bond market,China’s bond market started late,and the construction of bond market system needs to be further improved,but the development speed of bond market remains high,and the scale of bond market continues to expand.In recent years,China’s economic growth has slowed down,and the risk of default in the bond market has begun to appear.Bond issuers are affected by problems such as macroeconomic downturn,industry rectification or business failure,and bond defaults occur frequently.In 2021,the distribution of major industries with bond defaults began to change.The amount of real estate defaults ranked first in the whole year,reaching 33.738 billion yuan,breaking the pattern dominated by manufacturing bond defaults in the past three years.In terms of the nature of the defaulting enterprises,they are still dominated by private enterprises.As the first large-scale private real estate enterprise with bond default,Taihe Group explores the causes and subsequent impact of bond default,which has positive theoretical and practical significance for the future credit risk control of China’s real estate enterprises,especially for reducing the occurrence of bond default of private real estate enterprises.This paper first expounds the research purpose and significance,then systematically combs the relevant theoretical basis of bond default and relevant research literature at home and abroad,then introduces the basic situation of Taihe Group and the context before and after the bond default event,then deeply analyzes the causes of bond default from the perspectives of macro environment,industry change and company development,and explores the subsequent disposal and subsequent impact of bond default of Taihe Group,Finally,it summarizes the case analysis of Taihe Group,and puts forward enlightenment for the industry,companies and investors.The analysis of this case can obtain the following results: the macroeconomic downturn and the tightening of policies in the real estate industry inhibit the rapid expansion of Taihe Group’s business;The company’s business strategy is more radical,resulting in the company’s income falling short of expectations and the deterioration of profitability;Bond default has a negative impact on the credit of Taihe Group and reduces the company’s follow-up financing ability;Shake the investment enthusiasm of the bond market;It will cause certain economic losses to the investors of defaulted bonds.This study brings experience and Enlightenment to the development of bond market and helps to improve the bond market system;Bring reference to the operation and development of Taihe Group and other real estate enterprises to avoid similar events;Establish risk prevention awareness for investors and improve their risk awareness.This paper hopes to provide some ideas for the future development of the company and bring enlightenment to the development of the real estate industry through the specific analysis of the case of bond default of Taihe Group,so as to reduce the occurrence of similar bond default events and help the healthy and stable development of the bond market.