Question
2) A unique feature of the Chinese stock market is the co-existence of tradable and non-tradable shares. a) What are the rights of the holders
2) A unique feature of the Chinese stock market is the co-existence of tradable and non-tradable shares.
a) What are the rights of the holders of tradable and non-tradable shares and how do they differ?
[2 marks]
b) What was the historical reason for some shares to be non-tradable?
[4 marks]
c) The share of market capitalization of non-tradable shares decreased from 80% in early 1990s to 20% in recent years. Describe the reform that enabled such change. What was the main challenge of the reform and how did the reform achieve the effect it did?
[4 marks]
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