Reform of China's Split-Share Structure Takes Shape

20 Pages Posted: 6 Feb 2006

See all articles by Takeshi Inoue

Takeshi Inoue

Nomura Institute of Capital Markets Research

Abstract

China began dealing with the problems caused by the existence of nontradable shares in April 2005 as part of a fairly dramatic package of stock market reforms. The new rules make it possible to gradually sell on the market nontradable shares, which account for more than 60% of all shares issued by listed companies. Although the specifics of these reforms have not been completely worked out, the author expects the reforms to bring substantial change to China's corporate finance environment.

Keywords: China, nontradable shares, stock market reforms, corporate finance

JEL Classification: R51, O53, K22, G18

Suggested Citation

Inoue, Takeshi, Reform of China's Split-Share Structure Takes Shape. Nomura Capital Market Review, Vol. 8, No. 3, pp. 42-59, Autumn 2005 , Available at SSRN: https://ssrn.com/abstract=872489

Takeshi Inoue (Contact Author)

Nomura Institute of Capital Markets Research ( email )

Urbannet Otemachi Building
2-2-2, Otemachi, Chiyoda-ku
Tokyo, 100-8130
Japan

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