The Research Of Reducing State Shares

Shares of listed compAnes in our country are classified into Nonnegotiable sharesand negotiable shares. Nonnegotiable shares include Sponsor Legal Person Shares,Private Placement of Legal Person Shares, Staff Shares and state shares that includestate-owned shares and Domestics Legal Person Shares. The existence ofnonnegotiable shares becomes the tool for Nonnegotiable shareholders to get fundstogether and expand the gaP of costs arnong the shareholders. At sarne time, it leadsto the high profits rate of the market. The conunanding position of the state shares isthe systematical root of low operating efficiency for listed companies. It has causedthe problem such as weakness of property right, the cofltfol of itttemal personnel, thedeficiency of market mechansm fOr insPiritng and bindng managers.For reducing state shares to fulfill society security founds, the specialists inhome put forward many measures. For examPle, large state-owned invest companiespedicipate in reducing state shares, establish state shares holding fotmds, or transferstate shares to bounds, etc., meanWile the govemment have experienced someexperimental prOject research, such as directional sales and purchase of state shares,sales of state shares by l0% of the financing, etC., but all of these were not acceptedby investors.The paPer has proposed to analysis the origin of state shares, the hanns may becaused by Nonnegotiable shares and the conunanding position stated shares and putfOrward a practical project of reducing statC shares, Which is reducing theNonnegotiable shares and increasing the negotiable shares of listed companies torealize reducing state share gradually by increasing issue to refund pallial caPital topurchase state shares.In the paPeY, tWo cases will be analysed by Quanxin shares and Guiallou Maotaishares, and it is comPared the project of reducing state shares Which mentioned inthe paPer with other projects.