Cracking down on evasion and abandonment of debts does not mean guaranteeing just cashing
More than 10 days after the default of Yongmei scp003 on November 10, the market shock is still continuing. Statistics show that in the past week, corporate bond issuance interest rates rose sharply, about 125 BP.
In addition to the previous default of brilliance group, this is also the second default event highly concerned by the market since October. On the one hand, the main body is the state-owned enterprises with high rating. On the other hand, the market is more worried about the fact that the state-owned enterprises with weak qualifications evade or cancel their debts through the free transfer and restructuring line.
As for the evasion and cancellation of debts that are worried about in the market, the meeting of the financial commission clearly pointed out that various evasion and cancellation of debt behaviors should be severely punished to protect the legitimate rights and interests of investors.
According to the analysis of insiders, to put an end to the evasion and cancellation of debts of state-owned enterprises is actually to give sufficient confidence to the credit market and prevent credit risks from becoming regional or even systemic risks.
I think what is needed now is to restore investor confidence. This statement will undoubtedly ease the markets concern about the aggravation of default in the credit bond market. A private equity investor also said.
What needs to be seen is that a number of interviewees believe that firmly cracking down on evasion and abandonment of debts does not mean that they are protecting just cashing.
The general direction is to go bankrupt. If you want to break the hard won, you have to break it. I dont think its just for the sake of stability. There will be some warning functions for those who really evade or abolish debts, but the credit bond market is still very fragile. A creditor of Yongmei debt said.
If the regulatory authorities resolutely stop the state-owned enterprises deliberate evasion and abandonment of bonds, and let the issuers and holders of the bond market solve the problem of default in a market-oriented way, then the impact will be limited to the bonds issued by a certain industry and a certain rating in some areas. The liquidity operation of the central bank can reduce the liquidity impact of credit events on the financial market in the short term. In the long run, the bond market will continue to push forward in the direction of breaking rigid exchange and market-oriented pricing. Tian Feng securities analyst sun Binbin said.
In the first issue of the policy research of the peoples Bank of China in 2020, it was written that in order to steadily break the rigid cashing, the risk should be borne by the person who should bear the risk, and gradually change the situation of dislocation between the nominal and the actual risk bearers of some financial assets.
Frequent violations by intermediaries
In addition, the meeting of the financial committee also said that we should strengthen the self-discipline and supervision of the industry and strengthen the market restraint mechanism. All kinds of financial institutions should abide by the laws and regulations, and the financial institutions should abide by the laws and regulations.
First finance and economics noted that in the two cases of brilliance groups breach of contract and Yongmeis default, the intermediary agencies have violated the rules.
On November 20, the Shanghai Stock Exchange issued a regulatory warning letter to China Merchants Securities, the bond underwriter and trustee of brilliance group. According to the warning letter, China Merchants Securities failed to timely perform the duty of information disclosure of the trustee and effectively perform the duty of credit risk management of the trustee in the process of entrusted management of brilliance bonds.
The above-mentioned private institution bond personage said that Haitong Securities violated the rules, or pointed to structured issuance.
Relatively speaking, the style of private bond funds is more radical and more involved in structured bond issuance of private enterprises. However, the default also exposed the structural issue of state-owned enterprises. Beijing a public offering fixed income fund manager said to the first finance and economics.
On November 18, the association of interbank market dealers announced that during the issuance process of 18 Jinggong scp003 and 18 Jinggong scp004, Jinggong group led the issuance of two debt financing instruments through the relevant asset management plan in the way of direct subscription or commitment to buy back after listing, which destroyed the market order.
According to industry insiders, through the relevant asset management plan, in the way of direct subscription or commitment to buy back after listing is structured issuance.
In addition, in the self-discipline investigation launched by the association of dealers on the debt financing instruments of Yongcheng Coal Group, it is also found that the main underwriters such as industrial bank, Everbright Bank and Zhongyuan bank, as well as Zhongxin and Xigema accounting firms, are suspected of violating the self-discipline management rules of the inter-bank bond market. In the short term, the current regulatory actions focused on the defaulting parties will help to repair the credit environment and investor confidence and calm market sentiment; in the long run, the pre supervision will reshape the credit bond market pattern. Under the general tone of stability, it is still necessary for policy hedging to prevent the fermentation of pessimism. In the follow-up, we need to pay close attention to regulatory actions and marginal changes in market sentiment. Huachuang securities fixed income analyst Zhou Guannan thinks.
In addition, in the self-discipline investigation launched by the association of dealers on the debt financing instruments of Yongcheng Coal Group, it is also found that the main underwriters such as industrial bank, Everbright Bank and Zhongyuan bank, as well as Zhongxin and Xigema accounting firms, are suspected of violating the self-discipline management rules of the inter-bank bond market.