Market to enter a complete circulation era
(Chinanews)
Updated: 2006-06-26 15:42
As China's stock market is about to enter a complete circulation era, the
senior administrative level holding government-owned stock will be able to sell
their shares. China will thereby witness emergence of hundreds of rich men and
19 of them will be on the list of billionaires.
Statistics show that this year, restricted shares held by 340 natural
persons, totaling 952.79 million shares, will be launched into the stock markets
in Shanghai and Shenzhen. According to the closing price last Friday, such
restricted shares are valued at 9.25969 billion yuan, tantamount to a per capita
share of 27.23 million yuan.
Calculated by value of the above shares, within this year, 19 of these
natural persons will succeed in cashing out over 100 million yuan with the
highest volume at 800 million yuan. On the other hand, 136 out of 340 restricted
share holders will become multi-millionaires and 146 of them will turn into
millionaires. However, there are some holders who attain little from such shares
as they only have 5,000 shares in hand and they can only get tens of thousands
of yuan.
In the past, listed companies in China offered two types of shares, namely,
tradable share and non-tradable share, and the latter can not be put for open
transaction in stock markets, giving rise to many after-effects for the stock
market. Now China's securities regulatory departments implemented split share
structure reform and allow part of the state-owned non-tradable share to be put
into the stock market.
Before the split share structure reform is taken, China's state-owned
non-tradable share accounted for about two thirds of listed companies' total
equity capital. After the system of complete circulation share is put into
practice, the Chinese government will admit those formerly non-tradable shares
to be engaged in transactions in stock market in good order.
(For more biz stories, please visit Industry Updates)
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