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| 8 More Firms Plan to Float Shares |
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More than 90 percent of the Chinese firms listed domestically have completed or are in the process of state- shareholder reform as eight more firms, previously barred from trading on the stock markets, announced plans on Monday to float shares. The eight companies, including the Shandong Aluminium Industry Company and Tsingtao Brewery Company, have a total market value of 28.413 billion yuan (US$3.55 billion). About 1,370 firms are listed domestically and 1,151 firms involved in the reform process account for 92.36 percent of the total market value. This indicates the country's year-long state-shareholder reform is drawing to an end. The reform, also known as split share structure reform, is among the measures the government has taken in the past year -- along with legislative reforms for listed firms and corporate governance reforms -- to revive the capital market and improve its financial security. To make shares tradable, listed companies 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. After four years of bearish activity, the Chinese stock market rebounded by nearly 70 percent with improved investor confidence over the past 12 months, thanks to the sweeping share reform and other institutional changes. (Xinhua News Agency September 5, 2006)
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