Business / Finance

27.5b yuan in lock-up shares to become tradable

(Xinhua) Updated: 2013-01-14 09:13

BEIJING - China's stock market will see lock-up agreements on non-tradable shares worth 2.75 billion yuan ($438.51 million) expire this week, according to data from bourses.

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

Non-tradable shares of 19 listed companies will be eligible to be sold this 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.

 

Related Readings

 

China's stock market in 2012

China stocks expect big lock-up expiration

Regulator vows to take hard look at IPO applicants

IPO market expected to pick up in 2013: PwC

China's IPO activity loses momentum in 2012

 

Hot Topics

Editor's Picks