Exchanges Issue Documents to Further Regulate Bond Issuance

Shanghai Stock Exchange, Shenzhen Stock Exchange and Beijing Stock Exchange released their respective Circular on Further Regulating Bond Issuance (the “Circular”) on January 12, 2024, all of which take immediate effect.

According to the Circular, the exchanges support qualified issuers in conducting rational bond financing. Under the principles of complying with laws and regulations and ensuring openness and transparency, they would improve the financing review services and provide financing support for the issuers. The bond interest rate or price shall be determined in the way of quote, bidding or agreement. If any directors, supervisors or senior officers of an issuer or shareholders holding more than 5 percent in the issuer or other connected parties participate in the subscription of the issuer’s bonds, the details of such subscription shall be disclosed by the issuer as important matters in the announcement of the issuance results.