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Baolilai and other 12 share reform companies Wednesday announced to offer their tradable shareholders with more shares as compensations in the ongoing reform to make all their shares tradable, the China Securities Journal reported.
Baolilai agreed to compensate 2.0 shares per 10 shares to tradable shareholders, rather than its previous proposal of 1.5 shares per 10 shares, according to the newspaper.
Jinpan raised the share compensation level from 2.5 shares per 10 shares to 3 shares, Huiyuan telecommunications from 3.5 to 3.8, Jingshan from 3 to 3.2, Tongrentang from 2.2 to 2.5, Aukma from 3.8 to 4.2, Hongxing from 3.5 to 3.9, Xiangdian from 2.7 to 3.1, Zhongtie from 3.5 to 3.8, Haili from 3.2 to 3.5, Yatong from 3 to 3.4, Yiming from 3 to 3.2 and Yueyang paper from 2.6 to 3.
Following years of debate, China this year decided to end the split share structure, which is seen as the major problem in China's stagnant stock market.
The split share structure refers to the existence of both tradable shares and a large volume of non-tradable shares owned by the state and legal persons.
To make all their shares tradable, those listing companies participating in the reform have to offer additional shares or fund to public investors as compensations. If tradable shareholders are discontent with the compensation plans, they may veto the proposals.
(Xinhua News Agency October 27, 2005)
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