is the largest B2B marketplace in the world. Source Coconut Oil, Acer , Air Bike, Children Furniture , Cane Sugar, Nissan, Costume, Dell, Wallpaper, Gsm Phone, Transfer Paper, Swimwear, Vending Machine, Faux Fur, Laptop, Milk Powder, MAP, Scooter, Candy, Artificial Flowers, Greeting Card, Photo Album, Hair Dye, Billiard Table, Data Cable, Silk Fabric, Cultured Stone, Slippers, Sports Equipment, Wood Flooring, DVD Case, Audio, Computer Mouse, T Shirt, Granite, Packaging, Tube, Toy and Thong
State-share reform brings huge wealth to private investors 2006-07-19 20:08:38

    BEIJING, July 19 (Xinhua) -- The ongoing state-shareholding reform has earned private investors around 300 billion yuan (37.5 billion U.S. dollars), according to latest statistics released by the China Galaxy Securities Company.

    The reform, also known as split share structure reform, along with legislative reforms for listed firms and corporate governance, are among the measures the government has taken since last 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.

    Statistics from the China Galaxy Securities Company show through share compensation, listed companies have given shares worth 280 billion yuan to private investors, as well as cash of 11 billion yuan to shareholders.

    The share reform has greatly enhanced investor confidence in the future of the Chinese stock market, raising the composite index by about 50 percent since the beginning of this year.

    More than 1,100 Chinese firms listed domestically, which account for over 80 percent of the total, have completed or are in the process of state-shareholding reform. Enditem

Editor: Mu Xuequan
E-mail Us  
Related Stories