By Guo Lihong　

Date: 2002/01/15

Abstract:　

The cause for failure of the Measures on Reduction of State Stock in Listed Companies should be examined in a much wider background. The paper points out that the reduction of state assets and the full circulation of state stocks are two difficult issues that are different from each other even though they are interconnected, and should not be solved by mixing them together. The channels that should be adopted to reduce state assets at present are: overseas listed companies sell their assets to foreign strategic investors, new stocks are offered in the full circulation market with a reduction of state assets, joint ventures in reduction of state assets are established.