Share or cash compensation most welcome in split share reform

Most institution investors think share or cash compensation is the most attractive reform plan in the ongoing split share experimental reform, the Shanghai Securities News quoted a survey result of Guotai Junan Securities Research Institute as saying on Friday.

Following years of debate, China decided to end the split share structure, which is the major problem in China's stagnant stock market. Split share structure refers to the existence of a large volume of non-tradable state-owned and legal personal shares.

To make all their shares tradable, those pilot companies selected by the government have proposed their compensation plans in various forms, some of which were welcomed by the public investors while some received strong objections.

According to the survey, over 50 percent of institution investors expected the national economy of China to grow at rate of 8 to 8.5 percent, and over 60 percent of investors did not think the interest rate will be raised again this year.

Half of the investors surveyed think the Renminbi exchange rate will not change and half believe the currency will be appreciated, according to the newspaper.

Source: Xinhua