As a new type of financial derivative security, the convertible bonds have had a rapid development in China's financial market. Firstly, this paper studies the definition, character and issue of the convertible bonds, then the development of China's convertible bonds market and its some shortcomings. Secondly, considering the situation of China's convertible bonds market after China enters into WTO, this paper also analyzes the faults of China's convertible bonds market and some suggestions are given to make up them.