China Company Law

The latest China Company Law is published by 國家財政部

See the following link:-
http://www.casc.gov.cn/xgfg/200609/t20060901_376369.htm

For debt transfer to equity, the only possible way is to issue debentures which is convertible in ordinary shares and the value of shares to be converted needed to be specified when issuing the debentures. I extract the key terms below for your reference:-

发行可转换为股票的公司债券，应当在债券上标明可转换公司债券字样，并在公司债券存根簿上载明可转换公司债券的数额。

　　第一百六十三条　发行可转换为股票的公司债券的，公司应当按照其转换办法向债券持有人换发股票，但债券持有人对转换股票或者不转换股票有选择权。