No takers for China's sale of state shares

No takers for China's sale of state shares

SHANGHAI: China's landmark sales of state shares have fallen flat, with investors failing to take up much of the stock on offer, official media and analysts said on Thursday. The lack of enthusiasm has thrown into question China's "experiment" with the sale of state shares, aimed at reducing the government's hold over listed companies, they said.

Shenzhen-listed Guizhou Tyre Company announced recently that its existing public shareholders had bought 76.41 per cent of the 17.11 million state shares it put up for sale. China Jialing Industry Co, a Shanghai-listed motorcycle maker, said public shareholders had bought 82 per cent of 100 million state shares, it offered. "State share sale experiment falters," said a headline in the China Economic Times, said in a rare admission for an official newspaper. Although underwriters and domestic mutual funds will buy the unsold shares, the firms had given public shareholders priority in a move to tap China's vast bank savings.