The China Securities Regulatory Commission (CSRC) on November 29 announced a list of 10 publicly- listed firms from which two will be chosen to participate in the government's state-owned shares placement experiment.

The 10 firms include the Tangshan Jidong Cement Co., Ltd., the Yunnan Huayi Investment Co., Ltd., the Guizhou Tyre Co., Ltd., the Chongqing Taiji Industrial Co., Ltd., the China Jialing Industrial Co., Ltd. and others.

Owners of the circulating shares of the chosen two firms will be given priority in buying the state-owned shares on offer. The remaining part, if any, will be sold to securities investment funds.

The price of the placement will be above the net asset value per share and not higher than a 10 price-earning ratio, the CSRC said.

The state-owned shares bought by owners of circulating shares can be sold in the secondary market immediately, while those bought by the securities investment funds can only be sold gradually in the same market within two years.

The eight other firms will reserve their candidacy for next year.

Analysts here said that selling part of the state-owned shares will improve the equity structure of the target firms, and force them to improve their management and efficiency, as the firms will be more exposed to public investors.

They also hailed the experiment as a positive move in realizing the government's goal in repositioning the role of the state-owned sector in the national economy. (Xinhua)