In a reversal for the government's A-share reform efforts, reports say that A-share investors have turned down the rights issue suggested by Tsinghua Tongfang, one of four companies picked for the pilot scheme to convert non-tradable shares into traded stock. Over the weekend it emerged that only 62% of public shareholders voted in favour of the reforms, compared to the 66% required.
Under the reform, accomplished by the mechanism of a rights issue, the company's majority shareholders' stake would have markedly decreased, to below 50%. A-share investors would have seen their stake in the company become an absolute majority. Under the terms of the reform, the major shareholder portion of the...
