Shenzhen Stock Exchange Revises Convertible And Exchangeable Bond Trading Rules To Replace Multi-account Subscription With Single-Account Subscription

SZSE recently revised the Implementation Rules on Convertible Corporate Bond Business, the Business Guide on Convertible Corporate Bond Issue and Listing for Listed Companies and the Business Guide on Exchangeable Corporate Bond Issue and Listing. It replaces multi-account subscription with single-account subscription for convertible and exchangeable corporate bonds and optimizes the convertible bond issue and listing business, further implementing relevant provisions in the Measures for the Administration of Securities Issuance and Underwriting. The new rules took effect on December 28, 2018.

Currently, credit subscription is employed for convertible and exchangeable bond issue. The revised rules specify that investors must subscribe convertible and exchangeable bonds online through one securities account only. This provision ensures fair online credit subscription, sound performance of punishment mechanism for illegal online credit subscription, and effective mitigation of investors' default on payments after obtaining placements.

Furthermore, to make convertible bonds more popular with the market and ensure successive issuance, SZSE optimizes the convertible bond issue process by further cutting the time needed from completion of issuance to being listed for trading.