The Institution of a Convertible Loan in the Legislation of China and Russia

The article discusses the current aspects of the legal regulation of the convertible loan agreement in Russia and the People’s Republic of China. It is noted that the relevant federal law was adopted in Russian legislation not so long ago, which regulated certain problematic aspects of execution of the convertible loan agreement, which is a positive step towards improving the practice of its implementation. The methodological basis of the research for writing the article consists of logical, systematic and formal-legal (dogmatic) methods. Conclusions were drawn that by now the convertible loan agreement has not found its regulatory consolidation and appropriate recognition in Chinese legislation, although in fact there are all grounds for its implementation. Convertible bonds, which cannot be identified with convertible loan agreements, have become particularly popular in China due to existing legislative gaps. In the final part of the article, it is emphasized that the experience gained in Russia in regulating convertible loans may be useful for the PRC.

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