Bond defaults hurt market confidence busy demining agency!High debt Low cash flow the company needs vigilance

Recently, more than just bonds or payment information management products face difficulties caused by the collapse of market confidence, the relevant listed companies also share price plunge occurred or emergency suspension。Data show that from the beginning until May 15, a total of 16.3 billion yuan of defaulted bonds 20。  According to the reporter, currently being frequently research institutions, emergency mine, where the high rate debt, poor cash flow business is the focus of prevention。According to statistics, asset-liability ratio over 70% of the A-share listed companies in more than 300。But for "institutional pause buy credit debt" sound, easy to square up steady fund manager Ji Lingyun said the rumor is not reliable, some institutions to suspend debt configure or adjust the credit rate of return requirements, market behavior is reasonable。  In this regard, law secretary general of the Bank of China Panxiu Ping pointed out that the Chinese bond market is restructuring "All the assets are at risk," just against the debt path dependence is bound to break, "Investors need to learn to vote with their feet, enterprise We must also adapt to the issue of survival of the fittest environment "。  Bonds hit a wave of defaults data show that since 2017, the year of 49 credit debt default event。Since the beginning of 2018, the momentum of bond default continues, from the beginning to May 15, there have been a total of 16.3 billion yuan of defaulted bonds 20。In contrast, the 2017 January-May have 18 bond defaults, the scale of 14.2 billion yuan, the annual default size of 39.2 billion yuan, showing the scale of bond defaults this year has increased, but is still within the normal range。Defaulted bonds in the body, there is no lack of environmental protection, the manufacturing sector enterprises, such as Cadillac ecology, environmental protection fog God, Dalian Machine Tool, etc.。In addition, after large breach in urban construction in urban construction MTN1 relay 12 for breach of contract, 16 urban construction MTN001 breach again in March this year, bringing the urban construction has 11 bond defaults。In addition to the substantive breach of the corporate body as well as a large number of bonds have not yet entered payment。  In addition, there are some companies in breach of the edge。Watson Group, Shield Security Group cash flow crisis has emerged because people real control problem, Jin communications, etc. there is serious mismanagement, hurt related bonds。Statistics show that since 2018 has experienced negative events 1434 bond issuers / guarantors / or debt ratings were lowered Dealers Association and other sanctions。  In addition, only a few recent credit debt plummeted, although not yet a material breach, but also caused great concern in the market。Jinmao debt continued to fall since starting the year, it is now less than 60 yuan。There are bond investors told reporters, issuers Shandong Jin Mao Textile Chemicals Group's debt-servicing difficulties rumors circulating in the market a long time; in addition, 15 Jinhong debt 3-day losing streak, has an emergency suspension。Release data show that 15 Jinhong scale of 800 million yuan debt, the creditor may choose to sell back in August 27, 2018, once the Jin Mao Group suffered massive sell-back, will face great pressure to pay。  Reporters also noted that the recent violation has been the main enterprises also tend to fundraising through trusts and other non-standard product information management。Recent media reports, Guosheng securities owned pipe company's variety of "The Eagle" series of information management products by lending-edge biotechnology, Qianshan medicine machine, Tianye shares, the total size of about 1 billion yuan, such as the scale of $ 200 million Condor No. 118 through the communication and information management plan to invest in the country care Cadillac ecology。May 7, Cadillac announced that the 11 ecology Cadillac MTN1 unable to honor, at the same time on suspicion of violation letter Phi, the company was the SFC investigation, triggered solvency risk Condor No. 118。According to reporter inquiries, since 2015, at least nine Trust plans to invest in eco-Cadillac, involving Hunan Trust, the Trust Jiang, Yunnan Trust and a number of trust companies, mostly for use to supplement working capital。  Already exist in default or default risk of companies, many of which are listed companies, or default subject is a listed company's related parties。The debt crisis is also a serious blow to the stock price。For example BOCO's ST ICT, since the end of 2017 after the resumption of 16 consecutive daily limit; some listed companies select an emergency suspension, such as Cadillac ecology, Shield Security Group's shield the environment and are in suspension in Jiangnan Chemical。  Market confidence in the setback, Cadillac debt hurt the most successive bond default also hit a number of first。In August 2017, five foreign debt became the first cross-default bonds; April 24 this year, has long been a breach of debt due in spring and delisting, clearing accounts, became the first maturity bond default。  Which is cleared, the spring and the debt to investors great psychological impact。"Spring and debt maturity delisting, the client can not find out where bondholders, even codes are gone。"A person in charge of institutional investors, Mr. Chen to" Red Week "reporter noted that the current debt default delisting system is not perfect, it is the regulators, the bond defaults may expire after delisting, but the debt obligation should be retained, and easy access to the creditors, and liquidity problems after the expiration of the disappearance should also be properly addressed。  However, how to solve this problem there is a precedent in the market。May 2016, 11 Mengnai Lun failed to pay the interest due, constitute a substantial breach of contract, which is China's first listed on the exchange during the announcement of default of corporate bonds。In the rights of creditors and the tireless efforts of local governments and enterprises, in May 2018, investors have told reporters that the account has been frozen bonds show is already available, meaning that payment problems have been the perfect solution。  The wave of defaults, so that high-yield credit bonds investors deep injuries。Or to Mr. Chen, for example, we focus on institutional investment in high-risk credit debt, since the second half of 2017, more than six months, earnings very good; but he also admitted that, since March of this year, junk bonds does not well done。"Quite simply the nature of junk debt strategy, you seem to low-cost buy bonds, but maybe one day suddenly suspended, or issuers into the restructuring, from the point of view past cases, two or three years are possible , even if the final payment, cash flows, discounted may not be able to cover the cost of capital。"Mr. Chen said," rich bird fell to 22 the first day, if a bargain buy, the next day fell to 8。"At present in the suspension in Fuguiniao。  Under the continuous breach of contract, according to the reporter, said the market in recent sound institution has suspended buying credit debt。"I have heard the rumors, some institutions for risk control requirements, doing so can be understood。"Mr. Chen said that to his knowledge, with the exception of government bonds, agency debt to buy the credit risk control is very demanding, mainly affected by the recent debt default Cadillac, 'the recent debt default, the debt market confidence Cadillac greatest harm' "Watson debt risk is not small, original 3A rating, is now down to B, and soon may be down to C, and bigger DHC"。  But the reporter has learned that the public offering, the stock market is not pessimistic than expected。"The recent credit risk events occur frequently, resulting in market risk appetite has decreased, some institutions to suspend credit debt configure or adjust the rate of return requirement is reasonable phenomenon of market transactions。"Easy to square up steady fund manager Ji Lingyun also pointed out that the bond market turnover has not decreased significantly, the inter-bank market is still active, primary market issuance also continued。  Nevertheless, the agency has increased the research and demining efforts。Mr. Chen said, holding their hands billion-debt, 13 Hong gas, there is little five foreign debt, debt Dandong port, "Recent industry research very frequently, our part, in addition to the basic financial statement analysis, position low coupons to phone-based research, field research have to re-position。"For the Kaaba debt, Mr. Chen analysis, large Tianjin government efforts to support the Kaaba Group, the Kaaba possible technical default of debt, such as delayed payment, but it will eventually pay a high probability," So if speculative, debt Kaaba not a suitable subject, but from the perspective of long-term configuration of view, for example, buying position is not higher than 10%, then there is still a margin of safety. "。But he also warns that the debt does not preclude the Kaaba before cashing sudden suspension, even more than similar Ji Rong investment year suspension occurs, so the Kaaba debt, investors should make liquidity suddenly dried up preparations。  Demining organization is busy, highly indebted low cash flow for the company's need to guard against the recent large-scale defaults, easy to square up steady fund manager Ji Lingyun told "Red Week" reporter, the actual new 2018 bond issuer defaults 7, from the cause of default , state-owned enterprises, mostly historical issues, in addition to five private risk funds mainly from the chain and corporate governance, "the main risk characteristics include: a higher risk of capital chain financing under the first tightening part of the private debt levels, the ability to obtain now poor long throw or short-term debt, capital chain continued tight。The second corporate governance issues, some companies exist related parties of funds used, security breaches and information disclosure issue。Third, small-scale, less competitive, the industry downturn easily lead to a loss of insolvency "。  According to the increasing prevalence of joint assets credit rating Du Lihui, director of statistics, the higher the risk of default of corporate debt generally high rate, or even if the debt ratio is not high, but a large-scale debt and low asset turnover efficiency, the main business of payment, poor affect their cash flow (3 consecutive years is negative), and even much higher than the long-term accounts receivable annual revenues, and the height of the equity pledge; from the perspective of the shareholder structure, complex ownership structure, related party cross-shareholding companies, as well as the actual control people control is weak, people do not even have the actual control of the company is more prone to default; on industry characteristics, the characteristics described above have some trade-based multi-industry company, or the name of the concept of the rapid expansion of new industry business。Chen Zhixin, director of fixed income research department also believes that "the current risk of an outbreak of some major issues the main focus on the funding strand breaks or tight cash flow business."。  Sheng Yun to environmental protection, for example, the financial statements show that in mid-2017 the company's revenue 13.5.8 billion yuan, the total liabilities as of the end of 97.$ 1.8 billion of income 7.16 times, 48 of which bearing liabilities.9.2 billion yuan, the income of 3.17 times。In addition substantial growth in receivables category amounts, leading to 2015-2017 Annual net operating cash flow for three consecutive years and a substantial increase in negative net outflows, respectively -2.5.1 billion yuan, -16.0.8 billion yuan and -21.0.7 billion yuan。At the same time the ownership structure point of view, the largest shareholder is a natural person, only 13 stake.69%, and substantially all of the collateral。  Reporters based on statistics, as of the end of the first quarter of 2018, assets and liabilities have 100% higher than the A shares of 18 companies, of which 14 companies for the ST。Debt ratio over 70% of the companies have 374, excluding foreign banking, insurance, real estate companies on the list pay more for construction, coal aluminum steel, energy and environmental protection industries。  Underwriters "poisoned" It is worth noting that, while the impact of debt defaults in the body, the agency has also been affected。To five foreign debt, for example, investors questioned Debon Securities negligent underwriting and hosting business, asking them to jointly and severally liable。Also in January this year, Zhongshan billion-debt securities underwriter will BOCO report on the Beijing High Court, requiring BOCO to Zhongshan Securities principal and interest payments of nearly 800 million yuan。And on May 15, Heilongjiang Regulatory Bureau issued a warning letter, pointed Oceans debt underwriting brokerage Zhongshan, China and Thailand, and Chase three brokerage firms do exist tune incomplete, imperfect papers。  "In the administrative punishment, the issue of fraud means that the heaviest punishment。"Mr. Chen said, according to Xintai electrical point of view, to punish fraud in the issuance of the Commission, due to insufficient strength of the capital of listed companies, in fact, paid in advance by the sponsor to the damaged Industrial Securities brokerage investors, then by the brokerage to Xintai electrical and other defendant claims。"Just for bonds in January this year, five foreign debt issue has been identified fraud, creditors may learn reimbursement for Xintai Electric。"For the Heilongjiang Regulatory Bureau warning letters, Oceans employees hold a large-scale bond debt private equity fund, told reporters, Zhongshan hereby lodge a claim against the securities will not be easy。  In this regard, Zhongshan securities reply "Red Week" reporter, said, Zhongshan and Huatai Securities as lead underwriter, since the project launched in 2015, in the prevailing rules and regulations, has fulfilled the obligation to make transfer。For regulatory issues letter pointed out, Zhongshan Securities explained that caused "primarily by the lack of means of objective technical and other reasons, did not so developed as it is today think of search queries data software (such as enterprises look, Kai Xinbao, etc.), SAIC website does not have the prediction feature "immediately verify the information with other creditors, counterparties, etc., but these institutions are classified refused to provide information on the risk of。"We understand that investors have some negative emotions。"Zhongshan Securities, told reporters that if an individual investor to for litigation claims, Zhongshan Securities will defend their rights。Zhongshan securities also revealed that 1.6 billion Yang property preservation work has been completed 03, 01 and 1.6 billion Yang preservation of property being executed, a lawsuit against the company BOCO is also underway。  Reporters noted that in the coming year, 20 debt default, there are five underwriters for the bank, such as Cadillac MTN1 11 underwriters for the Agricultural Bank。According to the reporter, because the corporate bond issuance in the inter-bank market, banks usually selected as underwriters。From the point of view both cases, in many cases investors to securities firms accountable, and less the case of commercial banks be accountable。Dacheng Law Firm Senior Partner Hua Tao pointed out, as the largest domestic market issue size, the most actively traded bond market, there is a lack of institutional underwriting interbank, compared to "corporate bond underwriting business norms", "do inter-bank transfer guidance "and other documents to vague provisions of duties banks underwriting the bonds, when investors discovered issuers problems, no way be held responsible vendor recommended inter-bank market dealers association draw on corporate debt provisions on trustee clearly defined responsibilities lead underwriter is limited to the issuance and listing, the subsequent management should be borne by the special trustee。  For the demands of investors, Bank of China Law Research Association Secretary-General, Beijing Longan Law Firm senior partner Panxiu Ping pointed out that "all assets are at risk," Bond just against the philosophy is wrong, this inevitable path dependence will break。Panxiu Ping pointed out that as long as the underwriters and institutional channels perform their duties responsibly, should not reveal all the details for the bond, investors should maintain a rational rights, although there are cases in the past on behalf of the underwriters of bonds subject to pay, but it should not be a general solution model。  He also said the CBRC recently implemented the "No. 4 text" and "information management new regulations," the fundamental purpose of financial regulation chaos, standardize information management industry, not the root cause of business financing, but this year the central bank monetary policy has become more relaxed, corporate financing environment continues to expect to turn on the water is clearly unrealistic, "just to break the bond against necessarily a bad thing, investors need to learn to vote with their feet, companies must also adapt to the issue of survival of the fittest environment, the future best companies can the issuance of bonds. "。In addition the industry had said that just to break also help to improve against the risk of bond discount or premium, from the experience of developed countries, just to break against the vulture funds also contribute to the development of。