Abstract
In March 2014, China’s public offering bonds defaulted for the first time, this paper takes Chinese bond default and repayment data during 2014-2019, and investigates that implicit guarantee has a significant impact on the repayment of default bond. It shows the following findings: First, state-owned enterprises have a higher repayment rate after default than non-state-owned enterprises. Second, the stronger the comprehensive strength of the local government is, the higher the repayment rate will be after defaults. The higher the local government debt rate is, the higher the repayment rate will be after defaults. Third, the higher the bond rating, the higher the repayment rate of state-owned enterprise bonds compared with non-state-owned bonds. In low-rated bonds, the nature of enterprises has no significant impact on bond repayment. Finally, the paper investigates the impact of the event of "national launch of private enterprise bond financing support instrument in October 2018" on the repayment of default bonds, and finds that the impact of enterprise nature on bond repayment changes significantly before and after the event, which is consistent with the logic of other findings mentioned above.
JEL classification numbers: G31, G32, G33, H63
Keywords: Bond market, Default, Repayment, State-owned enterprise
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