BEIJING, June 1 (Xinhua) -- China Securities Regulatory Commission (CSRC), the sector watchdog, amended rules to permit public offering of subordinated bonds by securities companies from May 29, reported Xinhua Finance, a financial news platform run by Xinhua News Agency.
CSRC took the move to support securities firms to boost their capital and enhance risk control as implementation of the country's new securities law.
The Chinese top securities regulator announced in a circular posted on its website on May 29 that the revision took effect as from May 29, saying it also supported securities companies to issue innovative bond products such as write-down bonds, and contingent convertibles.
Since 2010 when regulations related to subordinated bonds of securities firms were applied in China, subordinated bonds have been functioning actively in expanding financing channels and strengthening capital adequacy of securities companies.
In the past three years, securities firms offered subordinated bonds totaling 456.3 billion yuan, which accounted for 34 percent of their aggregate corporate bond issues, making the bond type an important vehicle for them to boost liquidity and capital. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
A single purchase
