Administrative Regulations on Enterprise Bonds (Revised in 2011)
Administrative Regulations on Enterprise Bonds (Revised in 2011)
Administrative Regulations on Enterprise Bonds (Revised in 2011)
Order of the State Council of the People's Republic of China No.588
January 8, 2011
(Promulgated by Order of the State Council of the People's Republic of China No. 121 on August 2, 1993; and revised according to the Decisions of the State Council on Repealing and Amending Certain Administrative Regulations on January 8 ,2011)
Chapter I General Provisions
Article 1 These Regulations are formulated, in order to intensify the administration of enterprise bonds, direct the reasonable flow of capital, effective utilize idle capital of society, and protect the lawful rights and interests of investors.
Article 2 These Regulations are applicable to the bonds issued by the enterprises with legal personality within the territory of the People's Republic of China (hereinafter referred to as "enterprises"). These Regulations, however, are not applicable to financial bonds and foreign currency bonds.
No unit and individual may issue enterprise bonds with an exception of the enterprises specified in the preceding paragraph.
Article 3 The compensated financing of enterprises shall be carried out by public offering enterprise bonds, unless otherwise specified by relevant laws and the State Council.
Article 4 The issuance and purchase of enterprise bonds shall be in the principle of voluntary, reciprocity and compensation.
Chapter II Enterprise Bonds
Article 5 For the purpose of these Regulations, the "Enterprise Bonds" refers to the negotiable securities issued by enterprises in accordance with legal procedures, and on which such enterprises agreed to pay principals and interests within a certain period.
Article 6 The enterprise bonds shall indicate:
1. the name and address of the enterprises;
2. the face value of the enterprise bonds;
3. the interest rate of the enterprise bonds;
4. the term and method for paying the principals;
5. the payment method of interests;
6. the issuance date and serial number of the enterprise bonds;
7. the mark of the enterprise and the signature or seal of the legal representative of the same; and
8. the document number and date on which the examination and approval authority approved the issuance.
Article 7 The holders of enterprise bonds shall be entitled to the interests and principals within agreed term but may not have the right to participate in the operation and management of the said enterprise.
Article 8 The holders of enterprise bonds are not liable to the operation performance of the enterprises that issue such bonds.
Article 9 Enterprise bonds may be transferred, pledged and inherited.
Chapter III Administration of Enterprise Bonds
Article 10 The State Planning Commission shall, together with the People's Bank of China, Ministry of Finance, Securities Commission of the State Council, draft the annual scale of the enterprise bonds issued nationwide and various indices, subject to the approval by the State Council which will issue the same to the people's governments of all provinces, autonomous regions, municipalities directly under the Central Government, cities specially designated in the state plan, and relevant departments of the State Council for implementation.
No people's government or department may exceed the said scale and adjust any index therein, unless otherwise approved by the State Council.
Article 11 The issuance of enterprise bonds shall be subject to the examination and approval in accordance with the provisions stipulated in these Regulations; no enterprise may issue or issue in a disguised manner enterprise bonds without approval.
The issuance of enterprise bonds by central enterprises shall be subject to the examination and approval by the People's Bank of China together with the State Planning Commission; the issuance of the same by local enterprises shall be subject to the examination and approval by the branch institutions of the People's Bank of China in provinces, autonomous regions, municipalities directly under the Central Government, and cities specially designated in the state plan together with the competent planning authority at the same level.
Article 12 In issuing enterprise bonds, the enterprises shall be in conformity with the following requirements:
1.
......
Order of the State Council of the People's Republic of China No.588
January 8, 2011
(Promulgated by Order of the State Council of the People's Republic of China No. 121 on August 2, 1993; and revised according to the Decisions of the State Council on Repealing and Amending Certain Administrative Regulations on January 8 ,2011)
Chapter I General Provisions
Article 1 These Regulations are formulated, in order to intensify the administration of enterprise bonds, direct the reasonable flow of capital, effective utilize idle capital of society, and protect the lawful rights and interests of investors.
Article 2 These Regulations are applicable to the bonds issued by the enterprises with legal personality within the territory of the People's Republic of China (hereinafter referred to as "enterprises"). These Regulations, however, are not applicable to financial bonds and foreign currency bonds.
No unit and individual may issue enterprise bonds with an exception of the enterprises specified in the preceding paragraph.
Article 3 The compensated financing of enterprises shall be carried out by public offering enterprise bonds, unless otherwise specified by relevant laws and the State Council.
Article 4 The issuance and purchase of enterprise bonds shall be in the principle of voluntary, reciprocity and compensation.
Chapter II Enterprise Bonds
Article 5 For the purpose of these Regulations, the "Enterprise Bonds" refers to the negotiable securities issued by enterprises in accordance with legal procedures, and on which such enterprises agreed to pay principals and interests within a certain period.
Article 6 The enterprise bonds shall indicate:
1. the name and address of the enterprises;
2. the face value of the enterprise bonds;
3. the interest rate of the enterprise bonds;
4. the term and method for paying the principals;
5. the payment method of interests;
6. the issuance date and serial number of the enterprise bonds;
7. the mark of the enterprise and the signature or seal of the legal representative of the same; and
8. the document number and date on which the examination and approval authority approved the issuance.
Article 7 The holders of enterprise bonds shall be entitled to the interests and principals within agreed term but may not have the right to participate in the operation and management of the said enterprise.
Article 8 The holders of enterprise bonds are not liable to the operation performance of the enterprises that issue such bonds.
Article 9 Enterprise bonds may be transferred, pledged and inherited.
Chapter III Administration of Enterprise Bonds
Article 10 The State Planning Commission shall, together with the People's Bank of China, Ministry of Finance, Securities Commission of the State Council, draft the annual scale of the enterprise bonds issued nationwide and various indices, subject to the approval by the State Council which will issue the same to the people's governments of all provinces, autonomous regions, municipalities directly under the Central Government, cities specially designated in the state plan, and relevant departments of the State Council for implementation.
No people's government or department may exceed the said scale and adjust any index therein, unless otherwise approved by the State Council.
Article 11 The issuance of enterprise bonds shall be subject to the examination and approval in accordance with the provisions stipulated in these Regulations; no enterprise may issue or issue in a disguised manner enterprise bonds without approval.
The issuance of enterprise bonds by central enterprises shall be subject to the examination and approval by the People's Bank of China together with the State Planning Commission; the issuance of the same by local enterprises shall be subject to the examination and approval by the branch institutions of the People's Bank of China in provinces, autonomous regions, municipalities directly under the Central Government, and cities specially designated in the state plan together with the competent planning authority at the same level.
Article 12 In issuing enterprise bonds, the enterprises shall be in conformity with the following requirements:
1.
......