TITLE:
A Study on the Legal Issues of Holders Protection in the Panda Bond Issuance Process
AUTHORS:
Fei Huang, Fan Bi
KEYWORDS:
Panda Bond, Holder Protection, Issuance Process, Information Disclosure
JOURNAL NAME:
Beijing Law Review,
Vol.14 No.2,
June
20,
2023
ABSTRACT: With the macro background of the current global economic downturn and political instability, the possibility of default risk in Panda Bonds has increased significantly. Therefore, how to prevent default risks and strengthen holder protection in the Panda Bond market while meeting the basic demands of overseas bond issuers and expanding openness has become an important issue worth studying. To address this issue, it is necessary to first examine Panda Bonds at the “birth” stage (issuance). In the financial information disclosure of Panda Bonds, a feasible model that complies with the supervision of overseas auditing agencies should be sought, which is different from the European Union (EU)’s standards equivalence system and the unilateral registration system in the United States (US). It should provide sufficient space to support the future development of Panda Bonds, without causing excessive impact on the domestic market as in the US model by opening up too much.