The sales of state-owned shares are only adding to the pressures
bearing down on the Chinese stock market. However, the State
Council’s State-owned Assets Supervision and Administration
Commission (SASAC) is considering passing regulations that would
prevent such a share swarm from occurring by carefully supervising
the sales of state-owned shares.
Some insiders have hinted that the regulations will include
“Temporary Methods of Managing Transfers of Shares of Listed
State-owned Enterprises” and could be issued as early as this
month. The regulations will indicate that for listed state-owned
companies with under 1 billion shares, transferred shares should
not amount to over 5 percent of total shares within three
consecutive years; while for those companies exceeding 1 billon
shares, a 50 million share cap will be placed on any one
transaction while all shares sold over three consecutive years
should not account for more than 3 percent of the total.
For more details, please read the full story in Chinese (http://www.cs.com.cn/xwzx/12/200707/t20070706_1159185.htm)
(China.org.cn July 6, 2007)
