Frankly, I'm not sure the translation from GS is most appropriate here. In my understanding, most people said “本票” to reference the company checks or bank checks. Since “Promissory Note” has the certain term structure with the promised maturity term and return rate, it looks like a simple corporate bond without the traditional bond mechanisms. (In China, there are no many other places beside the banks/security houses for you to issue corporate bands.) The “convertible” term usually means the conversion of debt to equities.
The regulations and rules for the new type of notes are evolving in China. Now, it seems no big problem for the investors to work out the promissory note with the company. People choose the off-shore operations due to many other benefits beside the regulations. In my humble two cents, I prefer ”可转换期票” to ”可转换本票”. Hope other people can share more thoughts about the financing techniques and field intelligence later.
