Legal analysis: Convertible bonds, in layman's terms, are actually IOUs, which are equivalent to IOUs that we lend money to listed companies and repay the principal and interest at maturity (5-6 years), and can be converted into stocks at any time. What we earn is mainly the price difference between bonds and stocks, and the profit from converting bonds into stocks after stocks rise. Compared with stocks, convertible bonds have guaranteed interest, which falls less than stocks in bear market and can match the increase of stocks in bull market.
Legal basis: Article 159 of People's Republic of China (PRC) Company Law stipulates that corporate bonds can be transferred, and the transfer price shall be agreed by the transferor and transferee. Where corporate bonds are listed and traded on a stock exchange, they shall be transferred in accordance with the trading rules of the stock exchange.