| |
 |
State shares to float
|
A NUMBER of listed companies will soon be allowed to sell part of their presently non-tradable State stocks to public investors in a long-awaited reform, according to a China Business Times report.
The move is part of a massive project to cash in on State shares to finance the fledgling social security fund.
The authorities would choose a certain number of listed firms each year as candidates to sell State stocks according to the amount of deficit in the social security fund.
As most Chinese listed firms have only a small portion of shares tradable to the public, talks of reform have triggered selling of stocks due to fears of quick market expansion. But the market has stabilized following official assurance that State shares will be freed into the secondary market in a controlled manner.
Some of the State stocks would also be transferred to non-State institutions and some would be bought back by the listed firms. (SD-Agencies)
|
|
|
|
