综合一区欧美国产,99国产麻豆免费精品,九九精品黄色录像,亚洲激情青青草,久久亚洲熟妇熟,中文字幕av在线播放,国产一区二区卡,九九久久国产精品,久久精品视频免费

Economy

Markets

Industries

Insights

Reports

Events

Exchangeable bonds to be issued

By Bi Xiaoning (China Daily)
Updated: 2008-09-06 09:25

The national securities watchdog on Friday announced plans to allow shareholders of listed companies to issue exchangeable bonds, in an attempt to ease oversupply in the stock market.

The China Securities Regulatory Commission (CSRC) published a draft regulation on the newly introduced financing tool on its website, and will solicit public comment until Friday.

Exchangeable bonds are a kind of corporate bond issued by shareholders that can be exchanged for shares based on set conditions.

An unnamed CSRC official said in a statement that the bonds could provide shareholders with a new funding channel other than simply dumping their holdings, which would ease the impact of heavy selling.

Heavy selling has been cited as a factor that has aggravated liquidity strains in the flagging stock market. "The interest rate for exchangeable bonds can be much lower than other corporate bonds and bank loans, so it offers a low-cost financing method for companies hit by the credit crunch," he said.

The draft regulation stipulates that to control risks in the issuing of exchangeable bonds, the companies' net assets must be at least 300 million yuan ($44 million).

The exchangeable bonds carry a timeframe of one to six years and the price is set via inquiry launched by shareholders and underwriters.

"Investors in exchangeable bonds can exchange the bonds 12 months after the issuance and they have the option to exchange for stocks or not," the official said.