The Discussion Of Reduction Of State-owned Shares In Capital Market

From 1999 the government takes all kinds of measures to finish the reduction of state-owned shares , but the result is abortive. Because the reduction and circulation of state-owned shares are the future trend, the paper tries to analysis the unsuccessful reason of the reduction of state-owned shares and provides the possible solutions . During this process, the paper insists two principles, the first is that our country's reduction of state-owned shares must combine the foreign country 's reduction experiences , the second is that reduction of state-owned shares has not only the economic interests but also the political interests. Basing on the analysis of the unique characteristics of china' s stock market and their effect on the state-owned shares , the paper analyzes the reduction schemes provided by the market participants . By analyzing the mode of share mobilization, the pricing mechanism and the usage of funds coming from the share offering, the paper evaluates all the reduction schemes' feasibility . Then the paper provides an innovative scheme to solve the reduction of state-owned shares, which focuses on the gradual measures and interests compensation .Generally speaking , this scheme explores a new way to settle the reduction of state-owned shares.