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2006 timetable set for State-share reform
(Shenzhen Daily/Agencies)
Updated: 2006-02-14 14:20
The government aims to complete basic share-reform tasks this year as part of
work to develop and reform the overall capital market, an editorial published in
the central bank-backed Financial News said yesterday.
The editorial was part of a series in the newspaper discussing work to be
carried out in the financial sector in 2006.
Listed companies on mainland exchanges are now carrying out reforms to
transform their nontradable shares into tradable shares. Nontradable shares
previously made up roughly two-thirds of the country's stock market
capitalization, distorting share valuations and hindering the development of the
stock market.
Where necessary, the government should give guidance to companies to ensure
reform plans benefit holders of both tradable and nontradable shares, which will
help the stability of share prices after the reform process, the editorial said.
The editorial said securities regulators must focus on innovation this year
to build a broader and deeper capital market.
Large, high-quality companies will be encouraged to list domestically, it
said.
China will work toward a more market-oriented system, both for initial public
offerings and share offerings of fully tradable stock, it said.
The editorial signaled policymakers' commitment to financial reform, but
didn't elaborate on capital market development or say whether the completion of
the State-share reform signaled the resumption of new share
offerings.
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