First, convertible bonds can be redeemed by the company. Compulsory redemption means that the stock price is higher than the conversion price for 15 consecutive days. At this time, the stock price may have been very high, but the shareholders have not yet converted their shares. No matter what the reason, the company has the right to compulsory redemption.

Second, because the company went bankrupt, the debt could not be repaid. This secondary risk is obvious. However, in China's stock market, in order to protect vulnerable groups, the CSRC has strict requirements on companies that issue convertible bonds, so the possibility of bankruptcy of companies that issue convertible bonds is very low.

The content of this article comes from People's Republic of China (PRC) Financial Code: Application Edition by China Law Publishing House.