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MOF Official : Downsize of State-Owned Shares to Boost Stock Market
It will be a market-boosting news for the capital market to downsize and cash in on the state-owned shares, Vice Finance Minister Zhu Zhigang total the reporters recently.
Zhu have given three reasons to support his conclusion:
First, the proportions of state-owned shares in the listed companies share-controlled by the state are on the high side. Such circumstance is not favorable for the transformation of the mechanism of these companies and for the social public's restriction on this large shareholder. After the downsize of state-owned shares, the activities of the listed companies will be further standardized. Thus it is a market-boosting news to the investors.
Second, The capital obtained from the downsize of state-owned shares will be submitted to the newly established National Social Securities Fund (NSSF), and NSSF will then entrust a fund management company to operate this part of assets and capital. From this view, the case of a large amount of capital flowing out of the stock market will not occur.
Third, social securities capital has many sources, and the capital raised from the downsize of state-owned shares is just one of it. Related department will strictly keep it under control within the endurance of the capital market. (Panorama)
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