During The Year, The Scale Of The 153 Bond Defaults Exceeded 100 Billion: The Wind Control Became Stricter And The Main Contractor Took The "Winter".

The event of a star company's bond defaulting once again triggered market turmoil.

As a number of white horse stocks have exploded, the "deposit and loan double high" company has again triggered investors' risk aversion.

"Market financing is tight, and the expansion of radical private enterprises is often the first problem to be exposed. In the current situation, corporate bonds become more concentrated, and more attention should be paid to those companies that rely on external financing and aggressive business expansion. A private agency in Beijing said.

Wind data show that as of November 19th, a total of 153 bonds were defaulted, with a scale of 118 billion 711 million yuan. At the same time, the 36 companies default for the first time this year, and the normalization of default has basically become the consensus of the market.

Against this background, securities related business involving bonds has also become more cautious. Whether it is a primary market underwriting or self holding coupons, there have been many changes.

"Tighter regulation and stricter compliance." In November 20th, a broker in Beijing sighed when he was interviewed.

Default bond underwriter ranking

According to the Wind data, the 407 underwriters involved in breach of contract since 2014 have involved 61 brokerages such as CITIC Securities, CITIC Securities, China Merchants Securities, Huachang securities and Zhongshan securities.

Specifically, the largest number of defaulting bonds are state securities, a total of 20, followed by CITIC Securities and China Merchants Securities, involving 19 and 16 defaulted bonds respectively.

In addition, there are more than 10 defaulting bonds, including CITIC Securities and Everbright Securities.

Judging from the amount of default bonds, as of November 19th, 27 of the total amount of single bond default amounted to more than 2 billion. Among them, the largest bond balance is "16 Shen Xin 01", the issuer of the issue is Shanghai Huaxin International Group Co., Ltd., the main underwriter is Huaxin securities and CITIC Securities.

As a matter of fact, with the increasing number of credit default incidents, brokerages, the leading underwriters, are also on the cusp. Regulators have also repeatedly punished relevant institutions for irregularities in the process of bond underwriting.

For example, in the case of "16 thousand li 01", the Jiangsu Securities Regulatory Bureau examined the practice of Huachuang securities in the issuance of the bonds in the insurance company, and found that in its due diligence phase, the securities company did not take effective measures to verify the foreign investment information of the actual controller Zhuang Min of the issuer, nor did it check the causes and contents of the other large amounts of other receivables.

In addition, at the stage of trustee management, Huachang securities did not pay enough attention to the use of the 275 million yuan raising fund (which was actually mismatched by the actual controller of the issuer), which did not accord with the agreement of the issuer and the actual logistics and capital flow obviously mismatched. Therefore, it did not step up careful verification and independent judgment, resulting in the failure to identify and supervise the issuer to rectify the situation of illegal use of the proceeds.

As a result, Jiangsu Securities Regulatory Bureau issued a warning letter to Huachang securities.

In addition, Donghai securities has been warned by the Securities Regulatory Commission for its continuous diligence in the work of the trustee of the "15 downwind 01", failing to continue to supervise the use of the issuer's raised funds in accordance with the agreement on bond trustee management agreement. The open-source securities undertook the three phase corporate bonds of Tianjin Hao Tong products limited company, and was also ordered to make rectification because of the diligent and conscientious investigation in the due diligence, failure to find false records of the issuer's financial data, and failing to issue the interim trustee management reports in time.

"Bond default has been normalized to some extent, but everyone is actively exploring the solution. From the perspective of regulators, it is now a classified management of corporate bonds, and more systematic rationalization has strengthened the overall control. A broker dealer in Beijing told the economic news reporters in twenty-first Century.

Prudent wind control

Based on the changes in the market environment, many institutions have made corresponding adjustments.

"The supervision of regulators is still very strict for the Underwriters' due diligence supervision, which reflects that internal management is also understandable in terms of internal management. In fact, it is not a sudden increase in the risk of control after the increase in default, but regulators have always encouraged financial institutions to strengthen management. A brokerage firm in Shanghai pointed out.

A large brokerage firm fixed income department director also confirmed this point to our reporter. In its view, "with the expansion of business scale, there have also been some irregular situations in the market. Because the bond underwriting business cycle is short and the profit can be realized quickly, it is also an important part of the brokerage business. The market has a large market space before the development of the business. Therefore, the current regulatory authorities regulate the whole market, and it is very necessary for the securities companies to do their own business norms.

At the operational level, the foregoing brokers pointed out that "some institutions or targeted underwriting underwriting scale, so as to fine risk control, but different practices are different."

In fact, from the current market point of view, the one or two level market is still showing caution.

"Although the overall liquidity of the bond market has improved, the weaker financial issuers will still face the pressure of refinancing, because the risk aversion of investors to such issuers still exists. In addition, the frequent negative news in the market and the slide of star companies also let investors reexamine the refinancing ability of these issuers. The former director of securities firm fixed income pointed out.

On the other hand, before the China Securities Regulatory Commission issued the "securities company's corporate bond business practice ability evaluation method (Trial)", in the evaluation index has also aimed at the previous "scale is heavy" weakened.

CFA also pointed out that since the implementation of the "management and issuance of corporate bonds", the issuance process of corporate bond issuance has been further simplified, the exchange bond market has grown rapidly, and the ability to serve the real economy has been greatly improved. But at the same time, the substantial change of audit philosophy and market scale also requires that the underwriting institution must comprehensively enhance its practicing ability, strengthen its compliance with wind control, and fulfill the duty of "gatekeeper" conscientiously.

Therefore, the risk control of securities business for bond business has also attracted much attention.

"The new practice evaluation method has obviously weakened the concern about the scale of underwriting. Because of the more comprehensive indicators, some of the institutions in the market have only checked the scale phenomenon, and at the same time, everyone's awareness of wind control will be significantly improved, and the industry will also do well in the control and compliance of the bond business." The aforementioned bond underwriter told the economic news reporters twenty-first Century.