Feasibility Study Of The State Shares Traded

Non-liquid stock with national non-liquid stock being its representative is a unique creation of Chinese capital market. It appeared historically on the grand economic-reforming stage as was required by China's increasingly deepened reforms in its economic system, so being an inevitable and natural choice in a sense. It played a constructive and irreplaceable important role in clarifying manufacturer- possessor relationship and promoting the converting process of enterprises into stock corporations. But as China's capital market has advanced to today's phase, it itself has gradually become an obstacle, blocking further development of china's securities market. How to remove it by realizing liquidity of the national non-liquid stock, the major part of the non-liquid stock, is the subject of this thesis. First, analysis of the negative effects of the non-marketability of the national non-liquid stock is presented to explain the necessity of realizing its liquidity. Then it is illuminated that the right time has come to tackle it in terms of economic mechanism, policy environment, and market maturity. In account of the remaining impeding factors, it is proposed that an investment fund of national capital be established as an innovation in system. Thirdly, it is evidenced, through analysis and evaluation of the current forms of realizing marketability of the national stock to various degrees, that they can only be transient, or belonging to a certain market phase. Conclusively, based on all the analysis above, an effective model is designed which can ultimately lead to the thorough realization of the marketability of the national non-liquid stock. In addition, it is pointed out that realizing its complete liquidity is a demanding systematic project, requiring coordinating work by the government, creating a favorable legal and policy environment.