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Lock-up shares worth 71 bln yuan eligible for trade

Xinhua, June 28, 2015 Adjust font size:

Lock-up shares worth 71 billion yuan (11.6 billion U.S. dollars) will become eligible for trade on China's stock market next week.

A total of 3.35 billion shares from 39 companies will be tradable on the Shanghai and Shenzhen bourses from June 29 to July 3, down from 41.7 billion yuan shares unlocked this week, according to Southwest Securities.

Under China's market rules, major shareholders of non-tradable stocks are subject to one or two years lock-up before they are permitted to trade.

AVIC Aviation Engine Corp. will see non-tradable shares worth around 16 billion yuan become tradable on July 1, the largest amount of such shares to hit the stock market in the period.

Chinese stock market slumped for the past two weeks. The benchmark Shanghai Composite Index fell 7.4 percent on Friday to finish at 4,193 points, retreating from a peak of 5,166.35 on June 12.

However, investors are expecting a rebound following credit easing moves from China's central bank on Saturday to cut both the benchmark interest rates and the reserve requirement ratio (RRR), the amount of reserves banks are required to hold.

The People's Bank of China (PBOC) cut the RRR for commercial banks serving rural areas, agriculture and small businesses by 50 basis points (bps). The RRR for finance companies, or non-bank financial institutions, will be lowered by 300 bps.

The PBOC also decided to cut the benchmark interest rates. Interest rates for one-year lending and deposits are cut by 25 bps to 4.85 percent and 2 percent respectively. Endit