Shareholding Reform (Almost) Completed

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Reform of the Chinese stock market has been going on since 2005 , but news is just out (from China Daily) that the majority of listed companies (1,104, representing over 90 percent of total market capitalization) have now completed shareholding reforms to convert “non-tradable” state shares into tradable ones.

    “Beginning Monday, the stocks of these firms will recover their original names, with the prefix “G” removed…Meanwhile, as a reminder to investors, the prefix “S” will be added to the stock names of the 276 firms on the bourses that have not completed the shareholding reform”.

Further reform is thought to be on the way, and the next few years are likely to be interesting ones. However, as with the new Bankruptcy Law, it will also be interesting to see what is done with those “special”, “strategic” companies that have been held back.

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