--- SEARCH ---
WEATHER
CHINA
INTERNATIONAL
BUSINESS
CULTURE
GOVERNMENT
SCI-TECH
ENVIRONMENT
SPORTS
LIFE
PEOPLE
TRAVEL
WEEKLY REVIEW
Film in China
War on Poverty
Learning Chinese
Learn to Cook Chinese Dishes
Exchange Rates
Hotel Service
China Calendar
Trade & Foreign Investment

Hot Links
China Development Gateway
Chinese Embassies

Firms Poised to Merge Share Classes

More than 50 companies are ready to merge their tradable and non-tradable shares, said economist Liu Jipeng, one of the architects of China's stock market, in an interview with China Daily.

The first batch of pilot projects will probably be chosen from this list and approval granted by the China Securities Regulatory Commission (CSRC) in the near future, he said.

This reflects the will of both the central government and the companies' enthusiasm for reforming the existing share structure of the domestic stock market, Liu said.

As a transitional move in the reform of state-owned enterprises, companies in the A-share market only have about 40 percent of their shares traded among institutional and private investors. The rest are held by the State and are therefore non-tradable.

Having two classes of shares is a fundamental cause of the lack of development in the capital market over the last four years, according to Liu, who has helped list many of China's joint stock companies.

On April 12, CSRC officials announced that the conditions are right for launching pilot projects to merge both types of shares. Many economists have expressed their agreement with this decision.

The first set of firms to get the green light from the CSRC are most likely to be companies burdened with few state shares, Liu said. Of the 1,400 or so listed companies in the A-share market, 480 fall into that category.

These companies are aware of this so they are the ones most actively working on their share-merging plans.

Merging traded and non-tradable shares eliminates the existing division between two classes of shareholders with different, if not conflicting, interests, Liu said.

As shareholders gain greater control of companies, their share prices will gain value at a higher rate than those of companies subject to the old share division system, Liu explained.

According to data compiled by the Shanghai Stock Exchange, at the end of 2004, the total capitalization of tradable shares on Chinese stock markets was 1.2 trillion yuan (US$140 billion), while Chinese companies listed on overseas stock markets, from New York to Hong Kong, had a total capitalization of 2.2 trillion yuan (US$260 billion).

Liu pointed out that while companies in developed economies rely on capital markets for around 50 percent of their funds, companies in China still rely on banks for more than 95 percent of their financing.

He criticized some overseas analysts for saying it would make no difference where a Chinese company was listed, whether at home or overseas.

"By saying this, they were just trying to promote business for their own companies," he said. "If China does not have a strong and healthy capital market, its economy will suffer from many problems."

Since 1999, China has made two major share-merging attempts but they both failed. The first was in 1999, when companies were allowed to sell their State shares at less than 10 times their price to earnings ratio.

In 2001, another attempt was made to sell some State shares at an initial public offering price, which also caused the market to tumble.

The reason that both attempts failed, Liu said, is because they were both initiated by the Ministry of Finance and both aimed at using the proceeds to replenish the State sector pension fund, with no accompanying protection for existing shareholders.

But this time will be different, he told China Daily. The top leaders of China's financial system have conducted two years of research after the failure of the previous share-merging attempts. Companies and existing shareholders will be given much more room to work out their plans and negotiate terms.

(China Daily April 20, 2005)

Stocks Regulator Ready to Act
Regulation Grants New Rights to Smaller Shareholders
Regulator Plans Survey of Brokerage Industry
Stamp Tax on Securities Transactions Lowered
IPOs Resumed After 4-Month Suspension
CSRC Pledges to Increased Transparency
Print This Page
|
Email This Page
About Us SiteMap Feedback
Copyright © China Internet Information Center. All Rights Reserved
E-mail: webmaster@china.org.cn Tel: 86-10-68326688
主站蜘蛛池模板: 亚洲美免无码中文字幕在线| 国产三级a三级三级| mm131美女爽爽爽作爱视频| 高清国产精品久久| 国产色综合久久无码有码| yw193龙物视频永不失联| 无码专区狠狠躁躁天天躁| 久久精品视频2| 欧美a级v片在线观看一区| 亚洲欧美中文字幕| 特级黄一级播放| 出轨的女人2电影| 老头一天弄了校花4次| 国产伦精品一区二区三区免.费| 久碰人澡人澡人澡人澡人视频| 成人永久免费福利视频app| 久久婷婷电影网| 最新在线黄色网址| 亚洲国产成人一区二区精品区| 毛片在线播放a| 人人妻人人澡人人爽欧美一区| 精品中文字幕乱码一区二区| 啊灬啊别停灬用力啊呻吟| 色爱无码av综合区| 国产免费卡一卡三卡乱码| 麻豆一区二区99久久久久| 国产欧美日韩精品一区二区三区| 全免费毛片在线播放| 国产网红在线观看| 91精品免费不卡在线观看| 大桥未久全63部作品番号| jizz在线免费观看| 婷婷久久五月天| 三个人躁我一个| 成人午夜app| 三级午夜三级三点在看| 成人在线色视频| 两性高清性色生活片性高清←片| 成年人在线视频网站| 中文字幕免费在线| 成年人在线网站|