Don't let public money benefit sticky fingered shareholders

SOME SHAREHOLDERS OF private enterprises have reduced their holdings by a large margin immediately after the enterprises received government bailout funds, which caused the slump of the stock price of the enterprises afterward. China Economic Weekly comments:

Spurred to do so by the central government, 13 provincial-level regions have so far promised to provide bailout funds totaling more than 70 billion yuan ($10.1 billion), some of which have already been given out to private enterprises with a crying need for cash. And more funds are believed to be on the way.

Those listed enterprises that have received bailout funds have seen a sharp rise in their stock prices. And in a number of cases, some of their major shareholders have immediately sold their shares. They reap the rewards of the government support and then run away.