economy - Sale non-tradable shares takes off

Shanghai stock exchange

As expected the China Securities Regulatory Commission (CSRC) has announced it will start selling off the non-tradable shares of China's listed companies. Now, according to the China Daily, USD 400 billion worth of shares is being trade at the Shenzhen and Shanghai stock exchanges.
Two-third of the shares not not being traded and in theory the state could cash in another USD 800 billion if the threat of putting the remaining share on the market would not destroy the same market. That is what has happened since the summer of 2001 and it looks the CSRC is going to take that now for granted.
The ongoing holiday's will give everybody some time to brace for the opening of the markets again after the break.
The Financial Times has some more details on the planned track.

Buyers of state shares will not be able to sell their stake in the first year, and after that will be restricted to sales of a maximum of 5 per cent of a company's equity in each 12-month period.

Books on China's stock market