What Are Serial Bonds?

Bond listing means that a stock exchange recognizes and accepts certain bonds to be traded on the exchange market. Bond listing must comply with the listing system formulated by the stock exchange and relevant government departments. Unlike stocks, corporate bonds have a fixed duration, and the issuer must pay principal and interest in accordance with agreed terms. Therefore, the conditions for listing of bonds are different from stocks. In order to protect the interests of investors and ensure the liquidity of bond transactions, after receiving a listing application from the issuer, the stock exchange generally needs to review the listing qualifications of corporate bonds from the following aspects.

Bond listing

Bond listing refers to the legal act of bonds that have been issued in accordance with the law being publicly listed on the exchange after being approved by the stock exchange. Bond listing is the bridge connecting bond issuance and bond trading. Any bond traded on a stock exchange is called

(1) The amount of bonds issued must reach a certain scale. This is because if there is little circulation of listed bonds, it will affect the activity of the transaction, and the price will be easily manipulated.

(2) The operating performance of the bond issuer must meet certain conditions. If the issuer's financial situation deteriorates, it will affect the issuer's ability to pay its debts, which may lead to the failure of the bonds to mature and the interests of investors may be damaged.

(3) The number of bond holders should reach a certain number. If the number of holders is too small and the distribution range is small, even if the bond issuance is large, the transaction volume will not be too large, which will affect the bond market performance.

In the absence of unified bond listing rules, Shanghai and

(1) The issuing company submits an application for listing;

(2) Preliminary examination of the stock exchange;

(3)

According to the "Listing Rules", the duration of corporate bonds applying for listing should be more than one year, the actual amount of issuance is not less than RMB 50 million, and it must be rated by a credit rating agency, and the bond's credit rating is good. A bond recommender system is adopted for bond listing. Bonds applying for listing on the exchange must be recommended by one or two exchange-recognized institutions and a recommendation for listing must be issued. The Exchange establishes a listing committee to review bond listing applications, and the Exchange makes a decision on whether to approve the listing based on the opinions of the listing committee.

The Listing Rules impose strict requirements similar to those of listed companies on the disclosure of debts of listed companies. Issuers need periodic reports, interim reports, and periodic reports include annual reports and interim reports. Where the issuer's publicly disclosed information involves financial accounting, law, asset evaluation, credit rating, etc., it shall be examined and verified by professional intermediaries such as accounting firms (securities practice qualifications), law firms, asset evaluation and rating agencies, and Issue a written opinion. In light of the characteristics of bonds, the Listing Rules require issuers to disclose whether there is a default in the redemption and redemption of issued bonds and a statement of whether there is a risk of repayment on schedule, a description of bond tracking ratings, and major lawsuits affecting and possibly affecting the repayment of bonds Matters, etc. During the bond listing period, if there is an event that may cause a significant change in the bond's credit rating, any impact on the bond's repayment on time, or there are relevant market rumors, the issuer should submit an interim report to the exchange as soon as possible and clarify the announcement. The Exchange will suspend the trading of relevant bonds as appropriate.

Regarding credit ratings, the Listing Rules stipulate that issuers should agree with bond credit rating agencies on relevant arrangements for tracking ratings, and announce the tracking rating report for the previous year to the market before June 30 of each year. Bond credit rating agencies should track the issuer's bond credit changes in a timely manner. If there is a major change in bond credit, the bond credit rating should be adjusted in a timely manner and announced to the market in a timely manner.

After the bond is listed and traded, if the company has major illegal behaviors, major changes in the company's situation do not meet the conditions for bond listing, the funds raised from the issue of corporate bonds are not used in accordance with approved uses, and the company has suffered losses for the past two years, etc. The bond was suspended from trading and a decision was made within 7 trading days on whether to suspend its listing. After the above situation is eliminated, the issuer may apply to the exchange for resumption of listing, and the exchange shall decide whether to resume its listing within 15 trading days. If the consequences of illegal situations are serious, or major changes in the company's conditions do not meet the bond listing conditions, and the two-year continuous loss cannot be eliminated within the time limit, and the company is dissolved, ordered to close or declared bankrupt according to law, the exchange will decide Termination of its listing. Under normal circumstances, the listing transaction is terminated one week before the bond expires.

If the issuer, its directors, and the listing recommender violate the relevant provisions of the Listing Rules, the Exchange will order corrections, internal criticism, public condemnation in designated newspapers, investigation and punishment by the Securities and Futures Commission, and disqualification of the listing recommender depending on the severity of the circumstances. .