40 listed SOEs release share reform schemes
(People's Daily Online )
Updated: 2005-10-08 17:09

By Sept. 28, 40 listed state-holding companies had made their share reform schemes public. 8 of them are controlled by the central government and the remaining 32 are by local authorities.

Official with the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) said their departments at various levels had been pushing the split share reform forward actively and steadily with effective measures since the guideline for the reform was announced. Detailed regulations for the procedure of the reform have been promulgated after the experience of the first and second batch of trial companies has been drawn on. It has been made clear that listed state companies should work out reform schemes and launch the reform as soon as possible once time and condition permits. Necessary adjustments have also been made for the reviewing process.

At present, listed state companies are working on their reform scheme. Some are ready to submit their schemes to state-owned assets administrations above the provincial level which will speed up the review process according to relevant regulations. The SASAC will strengthen its instruction and supervision to make sure the reform go smoothly.

When reviewing the scheme, state-owned assets watchdog at various levels and state share holders take various factors into account, including the basic, P/E ratio, financing, tradable share prices, the minimum ratio of stakes held by state shareholders, and costs of non-tradable share holders.

Officials of the state-owned assets watchdogs explained that these factors were most concerned by tradable shareholders during the first and second batch of trial projects. Taking those into consideration will improve the scheme program to be implemented and make better communication between and among shareholders. Any reform scheme is subject to voting by shareholders concerned.