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State-share reform enters final phase
(Xinhua)
Updated: 2006-07-04 09:41
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More than 80 percent of Chinese firms listed domestically -- a total of 1,092 -- have completed or are in the process of state-shareholding reform as 35 more firms announced plans on Monday to float shares previously barred from trading on the stock markets.
About 1,370 firms are listed domestically and the 1,092 firms account for 3.45 trillion yuan (430.7 billion US dollars) in market value, or 81.25 percent of the total.
That figure indicates the country's one-year long state-shareholding reform is drawing to an end as less than 20 percent of the listed firms have yet to join reform.
The reform, also known as split share structure reform, plus legislative reforms for listed firms and corporate governance, are among the measures the government has taken in the past year to revive the capital market to improve its financial security.
The split share structure refers to the existence of both tradable shares and non-tradable shares owned by the state.
To make all their shares tradable, listed companies undergoing reform have to offer additional shares or funds to private investors as compensation for potential losses in the value of their portfolios when the publicly-owned shares hit the market.