The Trial Provisions for the Issuance of Convertible Bonds by Shareholders of Listed Companies promulgated by the China Securities Regulatory Commission opens a new debt financing channel for cash-hungry shareholders in China's financial market. These Provisions are designed to stabilise the country's stock market and ease oversupply of stocks in the A-share market, as panic sets in about possible dumping of newly freed locked-up shares under the Share Segmentation Reform launched in 2005. By Jiang Jiang, Hylands Law Firm partner
The China Banking Regulatory Commission recently issued guidelines which provide additional legal basis and specific operational guidelines for trust companies in China. By Allen Zhou, Paul, Hastings, Janofsky & Walker partner.