Studies On The Liquidity And Pricing Mechanism Of State-owned Shares

The proportion of state-owned shares is as much as 70% in the share-holding structure of China's listed companies, and their illiquidity has long been a major obstacle to the continuous development of the stock market. This thesis first makes a perspective overview of the pratical background of the study- the history and problems of stated-owned economy, and proves that to achieve the liquidity of stated-owned shares is a crucial and difficult task.Based on the analysis of the unique characteristics of China's stock market and how they take effects on the adjustment of Chinese econmic structure, the author puts forward that the prices of stated-owned shares, which will completely and free circulate in the stock market, should be determined by market mechanism. A successful and reasonable pricing mechanism would contribute to the realization of state-owned share mobilization. Therefore, one of the goals of this thesis is to build a theoretical pricing model, by means of which we could find out effective and fair share prices at the minimum cost. The author argues that the method mainly pricing the liqudity of state-owned share can provide a feasible choice. This method emphasizes that the premium on the liqulity of state-owned shares should be compensated by the share discount forilliqudity from the shareholders of state-owned stock.The strategical adjustment of the government's policy for stated-owned shares is required when this pricng method is applied to state-owned shares. The government plays a significant role in the State-owned shares' liqudity and lessening, so it should lay down the management rules and laws of the stated-owned share, and reform the system of investment and finiancing, etc..The research methods applied in this thesis mainly involve in theoretical and perspective methods, as well as comparative stuides in which some of listed companies and practices are examined.