Center

More non-tradable shares unlocked

By Shangguan Zhoudong (chinadaily.com.cn)
Updated: 2007-07-04 15:28

A large number of non-tradable shares became tradable in the first half of this year, China Securities News reported today.

In the first half of this year, around 26.65 billion non-tradable shares from 619 listed companies with a total capitalization of 401.9 billion yuan could be publicly traded, a sharp increase from 10.58 billion shares and 193.7 billion yuan in capitalization in the second half of 2006.

These unlocked non-tradable shares accounted for 22.11 percent of these listed companies' total tradableA-shares.

Special coverage: Markets Watch  Related readings:  Volatility fears on State share release CSRC sets up new unit to monitor non-public share sales  Shares record biggest monthly loss in 2 years  Stamp tax hike pumps $21.6b into State coffer

Among that, the number of unlocked non-tradable shares from majority shareholders, those who own more than 5 percent of a company's total issued capital, reached 205, a sharp increase from only 57 in the second half of 2006.

It is estimated that 454 listed companies' 30.96 billion non-tradable shares held by 2,986 shareholders will be converted into tradable shares with a combined capitalization of around 389.6 billion yuan.

In the first half of this year, a total of 4.64 billion non-tradable shares from majority shareholders with a total capitalization of 72.5 billion yuan were allowed to be sold on the stock market, accounting for 17.39 percent of the total unlocked non-tradable shares and 18.04 percent of their total market value.

Statistics show that up to June 30 of this year, shareholders from a total of 195 listed companies had sold 2.84 billion unlocked non-tradable shares on secondary markets, up 24.58 billion shares or 638.44 percent from the second half last year, accounting for 10.67 of the total unlocked non-tradable shares.

Data also show that majority shareholders unlocked and sold more non-tradable shares than minority shareholders, those who own less than 5 percent of a company's total issued capital.

Compared with 195 listed companies involved in selling out the unlocked shares, 424 listed companies were still holding these unlocked shares, signaling they are bullish on China's stock market.