China’s Haitong bondholder meetings lack quorum to approve buyback

By Marisa Wong

Morgantown, W.Va., Nov. 3 – Haitong Securities Co., Ltd. said the quorum was not met at the bondholder meetings convened on Monday.

As previously announced, Haitong is seeking bondholders’ approval of the repurchase of a portion of its A shares or H shares.

The company gave notice on Sept. 28 that it would hold meetings for bondholders to consider the repurchases, given the “significant” amount of obligations involved in its issuance of 2013 first tranche and second tranche corporate bonds, 2015 second tranche subordinated bonds and 2014 first tranche and third tranche short-term corporate bonds.

Because there were insufficient bondholders represented at the meetings, the proposed buyback has not been approved.

The company said, however, that based on the progress of the meetings it will continue to communicate with some bondholders to find a way to proceed with the share repurchase.

The securities firm is based in Shanghai.

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