New regulations on corporate bond placement and trading

Accordingly, for bonds offered domestically, enterprises that cannot make payments on time may negotiate with bondholders to pay with other assets with approvals by bondholders.

Enterprises must disclose unusual information and take responsibility for the legal status of those assets. Also, bond term extension shall not exceed 2 years.

For bondholders who do not agree to changes in terms and conditions, enterprises are responsible for negotiating to ensure the interests of investors.

In case bondholders do not accept the negotiation plan, enterprises must fulfil all obligations according to the announced plan.