Source: CCTV.com

04-15-2008 11:18

Shanghai's A-share market plunged to 3,297 points on Monday. In three months, it has dropped 40 percent from the 5,521 points it hit on January 14th. Some are blaming the slide on the release of limited trading shares. But an official from the state asset regulator says the release will actually help the stock market develop.

Li Rongrong, Chairman of SASAC

In 2008, a total of 81 billion shares will be released on the A-share market. Non-tradable shares of state-owned enterprises will account for a major portion of those. Many investors worry the release of such a large number of shares will hit the market hard.

But the chairman of the State-owned Assets Supervision and Administration Commission has tried to relieve their anxieties.

Li Rongrong, Chairman of SASAC said "We have committed to releasing the shares of state-owned enterprises to the market. We will contribute to the healthy development of the market. There is no need to worry."

The state-asset regulator says it will strengthen its supervision of the release and sale of the shares of state-owned enterprises. The sale of shares in a state-owned enterprise, in any given year, cannot exceed 5 percent of the firm's total share value. If it does, the firm has to apply to the regulator for approval.

Currently, the regulator is examining the shareholder accounts of state-owned listed firms. It's also working on a monitoring system for share transfers.

 

Editor:Xiong Qu