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China Plans to Allow Trading of State-Held Shares
Chinese government plans to let State shares of listed companies go into circulation as part of its efforts to raise funds for security funds for retirees and the jobless.
Xiang Huaicheng, minister of finance, announced the plan here on June 13 at an "International Workshop on Mobilizing Additional Resources Through SOE Reform for Establishing a Social Security System".
"The circulation of State-own shares is only a matter of time," the official said. It is rational to cash some State assets to raise funds for social security purposes, Xiang said.
Generally, the government holds more than 70 percent of shares in a State-controled company, but up to now, the government has not allowed any State shares to go into trading.
The capital market should give priority to "reform" and "re- organization" in the current restructuring of State reforms, said the official.
China is trying to build up a social security system that raises funds from several channels, Xiang said, adding that the setting up of a perfect social security system is directly linked to the implementation of policies to help relieve State enterprises from difficulties.
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