Can Exchangeable Bonds Satisfy Cash-Hungry Shareholders?

The Trial Provisions for the Issuance of Convertible Bonds by Shareholders of Listed Companies promulgated by the China Securities Regulatory Commission opens a new debt financing channel for cash-hungry shareholders in China's financial market. These Provisions are designed to stabilise the country's stock market and ease oversupply of stocks in the A-share market, as panic sets in about possible dumping of newly freed locked-up shares under the Share Segmentation Reform launched in 2005. By Jiang Jiang, Hylands Law Firm partner

12 minute readNovember 10, 2008 at 11:58 PM

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In October 17 2008, the China Securities Regulatory Commission (CSRC) promulgated a regulation on the rights of listed company shareholders to issue exchangeable bonds, namely theTrial Provisions for the Issuance of Convertible Bonds by Shareholders of Listed Companies (上市公司股东发行可交换公司债券试行规定) (Trial Provisions). The

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