Interim Regulations on Administration of Enterprise Bonds

Interim Regulations on Administration of Enterprise Bonds

Guo Fa [1987] No.21

March 27, 1987

CHAPTER I GENERAL PROVISIONS
　
Article 1 These regulations are hereby formulated to strengthen the administration of enterprise bonds, provide guidance conducive to the rational flow of capital, make effective use of idle capital of society, ensure the capital raised is invested in the county's priority projects, and to protect the lawful rights and interests of the parties concerned.
　
Article 2 These regulations are applicable to bonds issued by State-owned enterprises which have a legal person status in China.
　
Article 3 Subscription and purchase of enterprise bonds shall follow the principles of voluntary participation, respecting the mutual benefits of the parties involved and the bonds to be issued shall be secured bonds.
Arbitrary allocation of subscription quotas of enterprise bonds is prohibited.
　
Article 4 The People's Bank of China is the administrative authority in charge of the issuance of enterprise bonds. All enterprise bond issues are subject to approval by the People's Bank of China.

CHAPTER II ENTERPRISE BONDS
　
Article 5 An enterprise bond is a negotiable security issued according to the legal procedures by an enterprise which has entered into an agreement with the bondholder to repay him/her the principal plus interest on the bond he/she possesses within the stipulated time limit.
　
Article 6 Bond certificate (coupon) shall state clearly the following items:
(1) The name and address of the bond-issuing enterprise;
(2) The face value of the bond;
(3) The coupon rate offered;
(4) The maturity date and the methods of redemption of the bond to be issued;
(5) The form of interest payment;
(6) The date of issue and the serial number of the bond to be issued;
(7) The logo of the bond-issuing enterprise and the signature of a legal representative from the bond-issuing enterprise, and
(8) The document number and the date of issue of the certificate issued by the approval authority concerning the bond issue.
　
Article 7 Format of the bond certificate is subject to approval by the People's Bank of China.
　
Article 8 Bondholders are entitled to receive repayment of the principal plus interest of the bonds on maturity.
　　......