RULES GOVERNING EXCHANGEABLE BONDS BROADEN INVESTMENT CHANNELS

The China Securities Regulatory Commission (CSRC) has released new measures allowing shareholders of listed companies to issue exchangeable bonds.

“The new trial regulation provides a way to shareholders of listed companies to realise their share values,” said Gary Lock, managing partner at Herbert Smith. “It also provides a cheaper way to issuers to raise funding as the additional exchange mechanism will entail a discount on the coupon rate.”