China Banking Regulatory Commission, Measures for the Administration of the Establishment by Commercial Banks of Institutions that Carry Out the Conversion of Debt to Equity (Trial Implementation) (Draft for Comments)

中国银行业监督管理委会商业银行新设债转股实施机构管理办法（试行）》 (征求意见稿)

September 16, 2017 | BY

Susan Mok &clp articles &

Issued: August 8 2017 Main contents: An institution that carries out the conversion of debt to equity (Implementing Institution) shall have…

Promulgated: 2017-08-08

Issued: August 8 2017

Main contents: An institution that carries out the conversion of debt to equity (Implementing Institution) shall have a commercial bank registered and established in China as its principal investor, whose capital contribution shall account for not less than 50% of the total share capital of the proposed Implementing Institution (Article 9).

The registered capital of an Implementing Institution shall be monetary capital paid in in full on a single occasion, the minimum of which shall be Rmb10 billion or the equivalent in freely convertible currencies (Article 12).

The main business of an Implementing Institution shall be the conversion of debt to equity, and the main business or the revenue derived from such main business for the whole year shall not account for less than 50% of its total business or total revenue (Article 24).

An Implementing Institution may, in accordance with the regulations of the relevant competent industry authority, apply to become a private investment fund manager and lawfully and compliantly raise funds from qualified private investors (Article 26).

issued:2017-08-08

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