<b><i>Research on Debt Risk Prevention Strategies for Chinese </i></b><b><i>Financial Institutions</i></b>

In recent years, many enterprises have been unable to repay debts on schedule due to liquidity constraints, leading to prominent debt risks in financial institutions. To mitigate such risks, this study takes CDL Securities as a case example. Empirical analysis is conducted on the interest rate spreads and returns of CDL’s investments in all A-share listed companies in China from 2015 to 2019 (based on 2011–2018 stock indices). Based on the findings, specific strategies are proposed, including: improving the debt risk management system, optimizing debt financing structures and capital allocation, and strengthening internal governance and external controls.