1. Researchers find for the resolutions emerged during the full-liquidity reform (or G-company reform) starting 2005 that tradable shareholders were on average for every 10 shares compensated with 3.5 shares paid by the non-tradable shareholders. Please calculate and explain why this level of payment can be mutually agreeable between tradable shareholders and non-tradable shareholders. On average in 2005 for listed firms, 30% of shares were tradable among all shares outstanding. Moreover according to Birtch and McGuiness (2007) that A-shares were on average 56% higher in price than a comparable H-share in June 2005.