Date
17 October 2017

Ministry tightens convertible bond rules, Xinhua says

State-owned financial companies must retain control after convertible bonds are exercised, the official Xinhua news agency reported Thursday, citing a notice from the Ministry of Finance. Also, issuers of such bonds attached with stock warrants must have unaudited net assets of at least 5 billion yuan (US$820.93 million) in the latest accounting year and their distributable profits in the past three years must not be lower than the one-year interest paid by the bonds. The balance of outstanding bonds after each issue must not exceed 20 percent of their net assets at the end of the preceding accounting year, the report said.    

– Contact HKEJ at [email protected]

TL/AC/RA

 

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