One of the more than 40 companies picked by China to float state-held nontradable shares on the market, Citic Securities outlined its plans for compensating investors for listing its nontradable shares, saying holders of its tradable shares will receive 3.2 shares for every 10 shares, in compensation for the change in the shareholding structure. The government sell-down of nontradable shares has weighed on China's stock markets, but analysts say it is likely to ultimately benefit the struggling securities industry as the program will create more market activity.
Categories