China lets unlisted firms issue convertible bonds privately

China took fresh steps on Friday to broaden financing channels for small companies, allowing unlisted firms to issue convertible bonds privately. Until now, only innovative start-ups in China had been allowed to issue such securities, which allowed investors to convert debt into equity.
The move aims to give small and private enterprises easier access to funding and lower their borrowing costs, the Shanghai and Shenzhen stock exchanges said in separate statements on their websites.
China has moved to aid struggling companies amid the broadening Sino-US trade war, urging lenders to support small businesses and launching an interest rate reform this month to guide borrowing costs lower.