Case Analysis Of Yango Group Bond Default

The bond market plays an important part of the capital market.The issuance of bonds is a vital channel for corporate financing.However,with the increasing scale of bond market issuance in China,the accompanying risks have begun to gradually reveal.Especially after the introduction of new regulations on asset management,the rigid exchange was broken.The bond defaults have become increasingly common.In 2022,a total of 18 companies defaulted in the bond market.The number of default issuers in the bond market increased by 10 compared to previous periods.The cumulative default amount reached approximately 318 billion yuan.Furthermore,the current bond defaults are dominated by private real estate enterprises.The scale of corporate bond defaults in the real estate industry shows an upward trend.This trend can be attributed to several factors.The real estate industry policy is in a continuous high-pressure state in recent years.Additionally,refinancing policies have been tightened.Meanwhile,property sales return cycles have been extended.In addition,some real estate enterprises aggressively expanded in the early stages,resulting in huge debt repayment pressured and further accelerating the exposure of debt default risks.Real estate corporate bond defaults not only damage the interests of investors,but also may increase the financing cost of the bond market and disrupt the stability of the financial market.Therefore,the prevention of bond defaults risk for real estate enterprises is of great importance.This paper takes Yango Group as the research object.It studies the bond default problem of Yango Group through the combination of qualitative and quantitative analysis methods.The BP neural network financial warning model is constructed based on the financial data of listed real estate enterprises to evaluate the bond default risk of Yango Group.The study reveals that Yango Group’s financial situation performed well until the third quarter of 2021.Since then,the financial risk has gradually increased,leading the enterprise to encounter financial difficulties and eventually default.The reasons for Yango Group’s bond default are analyzed from two perspectives: internal and external factors.The external factors contributing to the bond default are mainly influenced by the economic downturn,tightening of the real estate policies and the financing environment.For internal factors,the analysis is conducted from three perspectives: operational,financial,and strategic.The operational level was mainly affected by the departure of senior management and a reduction in significant shareholders’ holdings.Meanwhile,the financial level was primarily affected by declines in solvency,profitability,operating capacity and weakened liquidity.At the strategic level,aggressive expansion strategies increased the risk of bond defaults.In this regard,this paper proposes prevention suggestions for bond issuers,investors and regulators based on the analysis of the bond default case of Yango Group.Bond issuers should reduce operational risks,diversify financing channels and enhance the risk warning mechanisms.Investors should diversify their investments,improve risk identification capabilities and strengthen post-investment tracking management to prevent bond default risks.Simultaneously,regulators need to improve supervision,enhance information disclosure and refine the bond default disposal mechanism.It is hoped that the analysis of Yango Group’s bond default case will provide valuable insights to bond issuers,investors and regulators.It is of positive significance for real estate enterprises to identify default risks and adjust corresponding strategies in a timely manner,help investors reduce default losses and promote the healthy development of the bond market.