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China Securities Regulatory Commission Monday started to collect public opinions on a regulation on listed companies' buy-back of public shares.
Analysts say this means that China would allow listed companies to buy back public shares, which is helpful to activate the country's stagnant stock markets.
The regulation said new shares should not be issued in the period of buy-back and the buy-back behavior could not be carried out within five days before the year or mid-year reports are released or before the publication of important information which might influence the share price.
The buy-back decision should not be passed only when over two thirds of the shareholders with voting rights agree, said the regulation.
China's stock market has reported frequent bad news in recent two months and the composite stock index of the Shanghai Stock Exchange dropped to 998.23 points during the morning session on Monday, the lowest level since Feb. 21, 1997.
The government is conducting a pilot reform on split share structure to bring more tradable shares onto the markets.
(Xinhua News Agency June 7, 2005)
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