The Problem Of Heavy Debts Of Chinese Enterprises Is Still In Sight.

In the past few years, people have been advocating China.

Backward and immature, it is because the diversified capital market has not been established, especially the stock market, but not the development of China's corporate bond market. For example, the reason why the capital market of the United States can be prosperous is related to the prosperity and prosperity of the corporate bond market.

Therefore, under such a concept, the Chinese government has also fully liberalized the corporate bond market policy. In recent years, especially in last year, the Chinese corporate bond market has been developing rapidly.

For example, according to China's Clearing Corp statistics, by the end of 2015, the scale of corporate bonds in China was as high as 3 trillion and 200 billion yuan, which was more than two times that of 1 trillion and 500 billion in 2010, and the number of corporate bonds issued was more than 5400.

At present, foreign countries have always regarded China's high debt as a major risk in the current Chinese economy.

The financial times estimates that corporate debt accounts for about GDP160% of China, and Standard Chartered even thinks that the debt ratio of domestic enterprises to GDP is 245%.

Although the number of foreign research institutions is different, the scale and expansion of Chinese enterprises' debt is indisputable.

A few years ago, China's economy grew rapidly and its consumption power was amazing. It would naturally attract enterprises to accelerate investment and expand investment. However, at present, China's economy is facing structural pformation and structural adjustment.

The slow pace of growth and the high degree of convergence of industrial investment result in serious overcapacity in many industries and industries, especially in industries such as iron and steel, coal and solar energy. Income can not pay the principal and interest of debt, the debt paying ability of enterprises is insufficient, and the cash flow is insufficient.

However, no one would have thought that China's rapid development of enterprises.

However, the default of corporate bonds will bring huge impact to China's financial market.

According to the announcement of the Shanghai clearinghouse website, Zhejiang based Chun ho Group Limited said that due to the exhaustion of cash flow, the company was unable to pay the full maturity of the one-year bonds payable this week.

In May 2015, Chun he group issued a 400 million yuan short term financing certificate with a coupon rate of 7.95%.

The big shipyard default has been the default of at least tenth enterprises in this year.

As domestic private enterprises and state-owned enterprises will face a record debt repayment scale this year, more corporate bond defaults will come in succession.

Earlier, Nanjing Yurun Food Co., Ltd. announced that it had declared a debt default and subsequently changed it to full payment.

According to reports, at present, there are 17 credit debt default cases involving Shanshui group, Asia Group, Print-Rite group, Hongda mining, northeast special steel, China Coal Huayu, Guoyu group, Tianwei Yingli, and Nathan group and so on, involving an amount of 15 billion 500 million yuan.

There are private enterprises and state-owned enterprises in breach of contracts.

The default of these enterprises is not a harbinger at all, nor can investors be on guard.

Once faced with such a situation, investors will be faced with great risks and may even lose their blood.

It can be said that from April this year, China has entered the peak period of corporate debt maturity, and by the end of the year, there will be a 4 trillion and 120 billion enterprise debt scale, a record high, with private enterprises and state-owned enterprises.

If corporate bonds default, more than a hundred financial institutions will be trapped in the wave of corporate debt crisis, which will make 14 banks face huge risks of debt maturity.

The rising debt risk of domestic enterprises is related not only to the sole monopoly assessment of rating agencies, but also to the downward adjustment of China's current economic growth and the adjustment of industries and industries.

Therefore, the problem of corporate debt in China will be serious.

According to statistics, the liabilities of Shanxi's 7 largest coal enterprises are more than trillion debt. The debt ratio of the total assets is as high as 80%, which is not only equivalent to the total GDP of Shanxi last year, but also 6 of these high debts are in banks, and 4 of them are bonds.

Because the holders of the bonds are mostly institutional investors such as banks, insurance, trusts and so on, the debt risk of these coal enterprises is almost pferred to the financial industry.

If the enterprises with serious debts have problems, China's financial system will be greatly affected.

In addition, the scale of corporate debt in China is so large that it is related to the monopoly of almost one enterprise.

Data show that the largest rating agency in China is Dagong.

Of the 5398 corporate bonds they rated, only 6 of them were below the investment level, and 3 of the 6 bonds had already broken.

This ratio is much lower than the international Rating firm such as standard and poor's and Moodie.

If we do not have a good corporate credit rating agency to give a real credit rating to the enterprise, but what kind of enterprises can issue bonds, then the default probability of corporate bonds will be very high.

Because this will make some bad credit enterprises also issue bonds.

It can be seen that at present, the risk of Chinese corporate bond market is not high enough to assess comprehensively, but the fact that corporate debt or financing leverage is too high is an indisputable fact. The default of enterprises is coming one after another. If more bad enterprises are issuing bonds, if the pressure of domestic economic growth is not eased, then the risk of default will increase. This may become a black swan in China's financial market, and investors should pay special attention to it.