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China's Non-Tradable shares to resume sales

May 2, 2005
China's securities regulator said it's resuming the sale of non-tradable shares of publicly listed companies on a trial basis.

The China Securities Regulatory Commission, in a statement, said the program started yesterday. The commission will vet applications from companies seeking to sell the formerly "lock-up" shares.

The bulk of the shares are held by the Chinese government, which owns about two-thirds of stocks in publicly listed companies in the nation's US$400 billion markets.

The government has previously said it wants to sell the shares to finance pension funds. Previous attempts to sell non-tradable shares were delayed when markets tumbled on investor concern about a glut of stock.

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