'Golden share' plan to let State relinquish its majority stake in large corporations

An experimental "golden share" arrangement will play a crucial role in the next stage of the reform of State-owned enterprises, according to informed sources in Beijing.

The introduction of a "golden share" - a type of preferred share held by the government or a government entity - would allow the State to relinquish its majority shareholding in large national corporations. But it would retain control over the major decisions, such as those in companies in the telecommunication and oil and gas industries, said a source familiar with the reform.