Article 16 of the Securities Law of People's Republic of China (PRC) stipulates that the public offering of corporate bonds shall meet the following conditions:
(a) the net assets of a joint stock limited company are not less than 30 million yuan, and the net assets of a limited liability company are not less than 60 million yuan; ?
(2) The accumulated bond balance does not exceed 40% of the company's net assets; ?
(3) The average distributable profit in the last three years is enough to pay the interest of corporate bonds for one year;
(4) The investment of the raised funds conforms to the national industrial policy; ?
(5) The bond interest rate shall not exceed the interest rate level stipulated by the State Council;
(six) other conditions stipulated by the State Council. The funds raised by the public offering of corporate bonds must be used for approved purposes, and shall not be used to cover losses and unproductive expenditures.
Extended data:
Article 16 A public offering of corporate bonds shall meet the following conditions:
(a) the net assets of a joint stock limited company are not less than 30 million yuan, and the net assets of a limited liability company are not less than 60 million yuan;
(2) The accumulated bond balance does not exceed 40% of the company's net assets;
(3) The average distributable profit in the last three years is enough to pay the interest of corporate bonds for one year;
(4) The investment of the raised funds conforms to the national industrial policy;
(5) The bond interest rate shall not exceed the interest rate level stipulated by the State Council;
(six) other conditions stipulated by the State Council.
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