Also See The "Non Standardized" Solution Of Public Debt: "16 Yihua 01" 1 Billion 175 Million Sold The Capital Transfer Payment.

After nearly two months of anxious waiting, in October 21st, the "16 Yihua 01" sales payment day came.

In the past two days, many institutional investors have asked each other privately. What investors seek is nothing more than a result of public disclosure.

However, the dramatic contrast is that the Yihua enterprise (Group) Limited (hereinafter referred to as "Yihua group") said in its announcement on the same day, "our company has applied for payment by the China Securities Depository and Clearing Co., Ltd. Shenzhen branch for the payment of the interest portion of the current bonds. The principal part of the repurchase is paid by our company on its own.

A "OTC payment" immediately gave the "16 Yihua 01" payment to the unlimited possibilities. Is this a breach of contract? The problem of "stability and stability" of institutional concern may no longer be answered publicly.

I do not know from what time, the bond back to the sales front to persuade the holder to become a "difficult" enterprise standard; if it can not be persuaded to return, private consultation after the sale of off-site settlement, has become an enterprise to avoid the announcement of the best choice for breach of contract.

"The rules of the market have been messed up." A private equity official told the twenty-first Century business news reporter.

In fact, cases like Yihua are increasing. Prior to the twenty-first Century economic news reporter has exclusive reports on the China People's leasing Holdings Limited after the bond default will be transferred to private placement platform to reduce the impact. The actual effect of "covering the ear and stealing the bell" may only be clear to the issuer.

"16 Yihua 01" will pay off the field.

Statistics show that "16 Yihua 01" is a corporate bond issued by Yihua group in 2016, issuing a scale of 1 billion 200 million yuan, with a term of 5 years, with the option of adjusting the coupon interest rate and the investor's right to sell back at the end of third years.

The main underwriter of the bond is Haitong Securities and is evaluated by the China integrity certificate. The latest rating was issued in the tracking rating report in June this year, and the rating is maintained at AA+ level.

Since August 29th this year, Yihua group has announced three times "16 Yihua 01" bond return declaration declaration. After the end of the registration period in September 5th, the final sale amount of "16 Yihua 01" was 1 billion 175 million yuan.

"In the past two months, the market has been rather anxious. There are more investors in Yihua. Everyone is paying attention to the payment of this bond, and sometimes people will inquire about it in the group. During the period, the company was persuaded to return the sale of the investors, but in the end it was not confirmed. In October 22nd, a private equity firm holding the bonds of Yihua group told the twenty-first Century business reporter.

According to our reporter, the market anxiety reached its peak on October 21st when the "16 Yihua 01" was repaid. "Has Yihua paid it?" "Is there no problem without announcements?" Similar queries are often mixed up in inter agency business discussions.

Who thought, wait and wait, Yihua group issued an unexpected but "nothing to say" announcement.

"Our company has applied for the payment of the interest portion of the current bonds by the China Securities Depository and Clearing Co., Ltd. Shenzhen branch. The principal part of the repurchase is paid by the company itself. Please contact related contact XXX. "

If the company is too advanced, the company will pay for it outside the field without mentioning whether it is a breach of contract. In a word, leaving the relationship is equivalent to telling you that no matter what the outcome of the payment is, it has nothing to do with the open market. " A medium-sized private institution credit rating told the twenty-first Century business reporter.

"OTC payment is generally the first payment of a small number of holders, negotiation of large holding institutions, or all consultations extended." A private equity fund manager of a private equity fund in Beijing said.

In October 22nd, twenty-first Century economic report reporter called the relevant contacts of Yihua group to verify the relevant payment, but as of press release, no reply has yet been received. A front desk operator said, "the company has been meeting."

In response to the reporter's question of "breach of contract", a Haitong Securities related contact immediately denied the breach of contract. As for the specific payment expressed in the "payment", the person said it was inconvenient to disclose to the non holder.

The "non standardization" solution is gaining popularity.

"It is possible that the bond defaults will be the same now, all of which have been shrewdly turned to private solutions to successfully circumvent the problem of default on open market bonds." The aforementioned private equity holder told the twenty-first Century economic news reporter.

Not long ago, the "18 medium rent one" issued by the Chinese people's leasing and leasing company, as a publicly issued corporate bond, issued a notice to the private equity platform when it paid for the sale. At the same time, it only indicated that it had been transferred 102 million yuan (the previous announcement was 534 million), but it did not mention how to pay the remaining money, and did not mention breach of contract.

Such a "letter of innovation" has once again refreshed the market awareness.

Although China Securities Limited, a leading underwriter of "18 rent one", interpreted it as "the issuer thinks that only investors know it can be relatively stable", such a statement is obviously difficult to be widely recognized.

A "18 medium rent one" institutional holder's attitude is more intense. "If everyone does this, then the default will be placed in the scope of private debt, private debt default is not an open market default, no default."

Similarly, when asked whether the "16 Yihua 01" OTC cash payment process complies with the relevant business standards, Haitong Securities also played Taiji.

"OTC payment is the intention of the issuer. As for the rules, it is not allowed to ask the stock exchange. We should not ask us that we are coordinating with them." Aforementioned Haitong Securities Related personages said.

In fact, according to our reporter, many companies that have difficulty in paying cash will consult with investors on matters related to the maturity of the bonds, or persuade the holders to withdraw their sales, or negotiate the renewal of the bonds.

Most of them are institutions. This is a game process. " The aforementioned agency said.

But a word of "encouragement" can not solve all the contradictions at the moment.

"The market needs open and transparent information disclosure. It is not to say that the market will improve if we deal with this kind of non standardized processing in private, and if the listed companies with default risk do not recognize the breach of contract, their liquidity will not continue to deteriorate. The director of the fixed income Department of a brokerage firm in Beijing pointed out that "now this popular non standardized solution mode may also encourage some of the issuers to delay their payment in a malicious fashion and cause moral hazard. It not only destroys market rules, but also overdraws market confidence.

It is noteworthy that many issuers and underwriters do not have a clear indication before many bonds are overdue, and even the rating agencies are issuing the related downgrades after the announcement of the bond default.

If the overdue bonds turn to "non standardization" to solve, the impact may be unpredictable.

As for the "16 Yihua 01" OTC payment events, Haitong Securities and China integrity certificate evaluation has not yet issued relevant announcements.

According to the twenty-first Century economic report combing reporter, Haitong Securities bulletin stayed in the seventh interim entrusted management report of Yihua group in 2019. The related matters were contract disputes between the Yichang group and the Ningbo Yi He medical partnership management partnership (limited partnership). The relevant stocks of Yihua group (600978.SH) held by Yihua group were frozen by law. In the evaluation of China integrity, the freezing of Yihua group's life stock in September and the announcement of the Yihua group on the credit rating watch list at the end of July were concerned.