CHINA: SZSE, NEEQ and CSDC Establish Bond Rules for Innovative Companies and Start-ups

Tuesday September 26 2017

China Securities Regulatory Commission (CSRC) has released the Guidance of CSRC on Launching Pilot Bond Projects by Innovative Companies and Start-ups (Guidance).

The Guidance has been put together collectively by CSRC, Shenzhen Stock Exchange (SZSE), National Equities Exchange and Quotation Co., Ltd. (“NEEQ”) and China Securities Depository and Clearing Co., Ltd. (“CSDC”).

The aforementioned organisations have formulated and promulgated the Rules for Private Placement of Convertibles Bonds by Innovative Companies and Start-ups (for Trial Implementation, hereinafter as “the Implementing Rules”)

The Implementing Rules are aimed at promoting innovation and entrepreneurship and serving the real economy amongst Innovative Companies and Start-ups.

The Rules will make changes to four key areas:

• The Conversion Procedures for Bonds
• The scope for the issuance of Bonds and non-public issuance
• The Placement of Bonds on the market and the duration for which these bonds can be placed
• The Information Disclosure Requirements for Bonds and Bond Trading

The Implementing Rules take effect on 22^nd September 2017.

For additional information please click the link above.