2. Corporate bonds shall be repaid in accordance with the agreed conditions within a certain period of time, and the corporate bonds shall be terminated after the repayment of principal and interest; If convertible corporate bonds are converted into stocks, their corporate bonds will lose their characteristics and form stock characteristics.
3. General corporate bonds refer to the behavior of the issuer to repay the principal and interest of securities within a period of more than one year in accordance with legal procedures. The issuance of convertible corporate bonds refers to the issuer's behavior of issuing corporate bonds that can be converted into shares within a certain period of time according to agreed conditions to investors in accordance with legal procedures.
4. Convertible bond is a kind of bond that can be converted into the stock of the bond issuing company, which is usually lower in coupon rate. Convertible bonds are essentially based on the issuance of corporate bonds, with an option attached, allowing buyers to convert the purchased bonds into shares of designated companies within a specified time range.
5. Bond is a kind of financial contract, which is the creditor's rights and debt certificate issued to investors when the government, financial institutions and industrial and commercial enterprises directly borrow money from the society to raise funds. At the same time, they promise to pay interest at a certain rate and repay the principal according to the agreed conditions. The essence of a bond is a certificate of debt, which has legal effect. There is a creditor-debtor relationship between bond buyers or investors and issuers. Bond issuers are debtors and investors (bond buyers) are creditors.
Legal basis: People's Republic of China (PRC) Company Law.
Article 154 The term "corporate bonds" as mentioned in this Law refers to the securities issued by a company in accordance with legal procedures and agreed to repay the principal and interest within a certain period of time. The issuance of corporate bonds by a company shall conform to the issuance conditions stipulated in the Securities Law of People's Republic of China (PRC).
Article 155 After the application for issuing corporate bonds is approved by the department authorized by the State Council, the method for raising corporate bonds shall be announced. The measures for raising corporate bonds shall specify the following main items:
(1) Name of the company;
(2) the purpose of the funds raised by bonds;
(3) The total amount of bonds and the par value of bonds.
(4) How to determine the bond interest rate;
(5) The time limit and method for repaying the principal and interest;
(6) Bond guarantee;
(7) The issue price and date of the bonds;
(8) The net assets of the company.
(9) The total amount of corporate bonds issued but not yet due.
(10) Corporate bond underwriting institutions.
Article 156 Where a company issues corporate bonds in the form of physical bonds, the company name, bond face value, interest rate, repayment period and other matters must be clearly stated on the bonds, which shall be signed by the legal representative and sealed by the company.
Article 157 Corporate bonds may be registered bonds or bearer bonds.