What is the concept of bond underwriting?

Legal analysis: Bond underwriting refers to the act or process that an investment bank accepts a client's entrustment and sells bonds to institutional investors and public investors according to the client's requirements in order to raise funds for the client. For the issuer, it is bond issuance, that is, for the purpose of borrowing funds, the issuer offers to issue bonds representing certain creditor's rights and payment terms to investors in accordance with the procedures prescribed by law.

Legal basis: Article 30 of the Law of People's Republic of China (PRC) on State-owned Assets of Enterprises shall abide by laws, administrative regulations and the articles of association of the state-funded enterprises, such as merger, division, restructuring and listing, increase or decrease of registered capital, issuance of bonds, major investment, provision of large-sum guarantee for others, major property transfer, large-sum donation, profit distribution, dissolution and bankruptcy filing, and shall not harm investors and creditors.