The central government is planning new rules to regulate the sale of state-owned stakes in listed companies to prevent assets from being sold too cheaply, the South China Morning Post reported. The rules would require sellers to factor share prices into valuation, abandoning the current practice in which only net asset value is considered and usually results in a large discount on the market price. The new rules could also provide clearer guidelines for the central government to divest its directly controlled companies. As the Shanghai Composite Index gained 130% in value last year, the government body in charge of state-owned enterprises (SOEs) has grown increasingly concerned about the reform of previously nontradable shares of SOEs into normal, tradable A-shares.
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