Size Non - Reduction Profit Model Innovation

Since the enactment of Listing Corporation share-trading reform management by China Securities Regulatory Commission on4th, Sept,2005, non-tradable shares has gradually enter the lifting period, which breaks the original equilibrium of supply and demand relationship on the market, brings huge market expansion pressure, and introduces substantial market instability. It thus has become an intractable but urgent problem to successfully accomplish the task of non-exchange-traded shares selling by majority and minority share holders under the premise of ensuring stock market stability while letting the investors partake in the fruit of stock market development. This paper studies the profit model innovation of non-exchange-traded shares selling by majority and minority share holders, hoping to provide some reference for non-exchange-traded shares selling by majority and minority share holders through financial innovation and model innovation.This paper first analyzes the background of non-exchange-traded shares selling by majority and minority share holders, and then analyzes the major way of selling non-exchange-traded shares, i.e., block trading platform selling, as well as the rise of block traders. Then this paper takes Tracker Fund of Hong Kong as an example to analyze the current state of overseas block trading, from which some beneficial lesson is drawn. Next, this paper analyzes the traditional profit model derived from non-exchange-traded shares selling by majority and minority share holders, and puts forward some cases in practice based on data availability.As the block trading industry enters into the state of complete competition, it is of vital importance for block traders to alter the profit opportunities of non-exchange-traded shares selling by majority and minority share holders through financial innovation and model innovation. This paper points out that block traders with leading edge may strengthen their market status and win development space through transaction model innovation, transaction object innovation, self survival protection consciousness innovation and service model innovation.Finally, this paper explores innovative ways of reducing state’s stake in listed companies, and raises some innovative schemes, such as policy innovation expectation, through the channel of asset management branches of securities traders, the set up of state-owned stock equity fund, etc.