PRC Regulations on Debt-For-Equity Swap 《公司债券转股权登记管理办法》China Legal Update (中国法律快报)

31 Jan 2012

On 1 January 2012, China’s State Administration for Industry and Commerce implemented administrative measures for the debt-for-equity swap registration of countries. This allows a creditor to swap debt owed by a limited liability company or a joint-stock limited company formed inside China for equity, thereby increasing the registered capital of the company. Previously, only a few Chinese local authorities (such as those from Tianjin, Chongqing and Shanghai) recognised such debt-for-equity swap practices.

This article examines the applicability of such administrative measures, as well as their consistency with current laws in China.

To read the update, please click here.