How to buy corporate bonds in China?

1. How to buy corporate bonds in China? Individuals who want to invest in corporate bonds must first open a securities account at a securities business outlet. When corporate bonds are officially issued, they can be bought and sold like stocks, but the minimum trading limit is 1 000 yuan. Judging from the pilot issuance of corporate bonds of Yangtze Power Company, it adopts the mode of "online issuance and offline issuance". Online issuance means that a certain proportion of corporate bonds are publicly issued to public investors at a certain issue price and interest rate through the bidding trading system of Shanghai Stock Exchange. The subscription funds must be fully deposited into the securities account before subscription. As far as secondary market transactions are concerned, individual investors can only buy and sell corporate bonds in the bidding trading system. Every trading day at 9: 00 15? 25: 00 is divided into call auction time when the bidding system is turned on, and N is sold at 9: 30. The continuous bidding time is 1: 30, 13 to 15. Corporate bonds are sold on the day they are bought, that is, the T 0 trading system. What are the conditions? According to the Listing Rules of Corporate Bonds of Shanghai Stock Exchange (revised 20 15) issued by Shanghai Stock Exchange, newly-added corporate bonds are divided into the following three categories: 1, corporate bonds for public investors and qualified investors, namely "publicly issued" bonds. This kind of corporate bonds must meet the situation that there is no debt default or delayed payment of principal and interest in the last three years, the average annual distributable profit realized in the last three fiscal years is not less than 1.5 times of the annual interest of the bonds, and the credit rating of the bonds must reach AAA. In other words, public investors who can't meet the requirements of qualified investors (described below) can only choose AAA-level varieties if they want to invest in new corporate bonds. AAA is the highest level of domestic bond rating, which shows that the regulatory authorities have made great efforts in protecting public investors' funds and avoiding risks. It should be noted that if the debt rating of "Dagong Sale" bonds is lowered to below AAA during its existence, public investors will not be allowed to continue buying, and those already held can be sold or held at maturity. If the debt of a "small public offering" bond is raised to AAA level during its existence, but it cannot be upgraded to a "large public offering" bond, public investors will still be unable to participate in the transaction. 2. Corporate bonds only for qualified investors, that is, "small public offering" bonds, cannot be invested by ordinary public investors, so the biggest difference between small public offering bonds and public offering bonds is that the credit rating of bonds is below AAA, that is, "AA", "AA-" and other bonds with lower ratings. 3. Non-public issuance of corporate bonds Non-public issuance of corporate bonds, that is, private debt, is characterized by the fact that except for qualified institutional investors, the number of private debt investors shall not exceed 200 at a time, and the exchange that exceeds 200 will not confirm the transfer. Investors should not only meet the requirements of qualified institutional investors of the exchange, but also consider the risks such as limited transfer scope and limited liquidity. 2. What are the conditions for issuing general corporate bonds? (I) Conditions for Issuance According to the relevant provisions of the Securities Law, the Company Law and the Pilot Measures for the Issuance of Corporate Bonds, the issuance of corporate bonds shall meet the following conditions: 1, the net assets of a joint stock limited company shall not be less than RMB 30 million, and the net assets of a limited liability company shall not be less than RMB 60 million; 2. The accumulated balance of corporate bonds after this issuance shall not exceed 40% of the net assets at the end of the latest period; The accumulated corporate bond balance of financial companies is calculated according to the relevant provisions of financial companies; 3. The company's production and operation comply with the provisions of laws, administrative regulations and the company's articles of association, and the investment of raised funds conforms to the national industrial policy; 4. The average annual distributable profit realized in the last three fiscal years shall not be lower than the interest of corporate bonds 1 year; 5. The bond interest rate shall not exceed the interest rate level stipulated by the State Council; 6. The company's internal control system is sound, and there are no major defects in the integrity, rationality and effectiveness of the internal control system; 7. The credit rating agency has a good credit rating on the bond. (II) Conditions for Non-issuance A company may not issue corporate bonds under the following circumstances: 1. The previous public offering of corporate bonds has not been fully raised; 2. The fact that the company breaches the contract or delays the payment of the principal and interest of the issued corporate bonds or other debts is still in a continuous state; 3. In violation of regulations, change the use of funds raised by public offering of corporate bonds; 4. There are false records in the financial accounting documents of the company in the last 36 months, or the company has other major illegal acts; 5. There are false records, misleading statements or major omissions in the application documents for this issuance; 6. Other circumstances that seriously damage the legitimate rights and interests of investors and the interests of the public. According to Article 16 of the Securities Law, the funds raised from the public offering of corporate bonds must be used for approved purposes, and shall not be used to cover losses and unproductive expenditures. The use of bonds plays a great role in the company's operation, which can solve the financial problems and cannot be used to make up for losses and unproductive expenditures. The issuance of general corporate bonds also needs to meet the corresponding conditions, in which the net assets of a joint stock limited company are not less than RMB 30 million yuan, and the net assets of a limited liability company are not less than RMB 60 million yuan.