China's State-owned share dilemma

China's State Council recently announced the cessation of the sale of State-owned shares on the domestic securities market. The move comes after barely a year of selling State-owned shares domestically, with proceeds going to national social security funds. The legislation that put domestic sales into effect last June is generally perceived to have impact on the securities, banking and insurance industries in China. The legislation has not been abolished entirely and is continuing to affect PRC companies' overseas listings.