Metals News
27.5 Bln Yuan in Lock-Up Shares to Become Tradable
industry news
08:39AM
Jan 14,2013
Source:SMM

BEIJING, Jan. 13 (Xinhua) -- China's stock market will see lock-up agreements on non-tradable shares worth 2.75 billion yuan (438.51 million U.S. dollars) expire next week, according to data from bourses.

The figure decreased from the 42.4 billion yuan in shares that went tradable this week, data from the Shanghai and Shenzhen stock exchanges showed.

Non-tradable shares of 19 listed companies will be eligible to be sold next week, with shares from locked initial public offerings (IPOs) accounting for nearly 70 percent of the total value, the data showed.

The portion of initial shares in to-be-unfrozen stocks is expected to increase this year due to massive IPOs issued two years ago, which will strain capital flow in the market triggered by a possible cash-out, analysts said.

China's stock market has recently experienced a sharp rally, shored up by improving economic data following lackluster performances last year amid an economic slowdown.

The country started a program in 2005 to convert non-tradable shares into tradable stocks. Major shareholders of non-tradable stocks are subject to one or two years of lock-up.

 

China stock market
non-tradable shares
tradable shares
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