Key To Reduction Of State-owned Share Of The Listed Companies In China

The share of the listed companies in China are artificially divided into circulating stocks and non-negotiable ones, control of the companies has been grasped by the state-owned stocks being not circulating. The stock market has been just set up for raising funds, while circulating stocks are just issued for raising funds. The stock market loses the mechanism of stabilizing because the non-negotiable stocks owned by one holder can control the company. Reduction of state-owned share of listed companies becomes the subject that administrative authority and economists probe actively in recent years, and the Chinese securities market has carried on the experiments of two reduction programs.Basing on the overview of drawbacks of high proportion of state-owned share, this thesis comparatively analysis several reduction programs' principle, characteristic, feasibility and lasting operability. This thesis especially analyses the influence to the shareholders' value by various schemes, so as to design the feasible reduction schemes that can protect all the shareholders' interests.The thesis consists of three main parts. Part one of the thesis reviews how the problem of state-owned stock of listed company emerges, and trouble to the listed companies and the securities market. Part two compares various kinds of schemes including experiment one, and proves that implementation of the schemes depend on the influence to the shareholders' value. Part three describes how to design the feasible reduction schemes that can balance all the shareholders' interests.