China Securities Regulatory Commission, Information Disclosure of Private Issue of Bonds by Securities Companies Guidelines

Issued: August 29 2003
Effective: October 8 2003

Main contents: The issuer should ensure that qualified investors who participate in the subscription or assignment of bonds should have equal access to information in relation to the bonds (Article 7). Part Two sets out the requirements for a prospectus. A prospectus is valid for six months. If no bonds are issued within the validity period, the prospectus should be amended. Extension may be permitted under special circumstances (Article 12). Prospectuses and other information relevant to the bond issue disclosed to qualified investors may not be disclosed to the public (Article 16). The issuer has continuous disclosure obligations that at least an annual report and a significant event report should be disclosed (Article 19). Events such as substantial losses, capital reduction, mergers, division, dissolution and bankruptcy request should be reported to qualified investors that are holders of the bonds in a timely manner (Article 22).
Related legislation: Administration of Securities Company Bonds Tentative Procedures, Aug 29 2003, CLP 2003 No.7 p7