LW6134 Chinese and Comparative Company Law
rule Mainland China Translation unavailable

Measures for the Administration of Convertible Company Bonds

可转换公司债券管理办法

CSRC rules defining convertible bonds as equity-like securities and regulating their trading, transfer, disclosure, conversion, redemption, put-back, price adjustment, investor suitability, and market monitoring.

Open source

Use It For

Use this for convertible-bond financing and the boundary between debt and equity. It is especially important for conversion timing, conversion-price adjustment, redemption, put-back, and disclosure questions.

Teaching Notes

The rule states that a convertible bond is a company bond that can be converted into the issuer’s shares and is an equity-like security under the Securities Law. That makes it a bridge instrument for Unit 3: before conversion it is creditor finance; after conversion it becomes shareholder finance.