SHANGHAI—Chinese companies have become avid issuers of bonds that convert into shares, building on a stock-market rally to raise funds at low interest rates. The surge in issuance of yuan-based convertible bonds this year, alongside other instruments such as perpetual bonds, shows how companies are becoming more sophisticated in using capital markets to raise funds. However, the blizzard of deals isn’t necessarily good news for existing shareholders, who could in time see their own holdings diluted.

Source: Wall Street Journal May 26, 2019 10:52 UTC