276 listed firms will carry stock code prefix as part of efforts to speed up conversion of state-owned non-tradable stocks
Mainland-listed companies that have not yet completed their state-owned share reorganisation will be publicly identified by a new stock code prefix as part of the government's plan to speed up the final stages of the landmark reform.
From today, the 116 Shenzhen and Shanghai-listed companies that have not yet initiated the reform and the 160 which are still in the reform process will be identified with an 'S' before their abbreviated name and stock code on the exchanges and in all official documents and reports.
Previously, companies that had finished the reform were identified with a 'G' prefix but that practice will be dropped from today as the government resorts to naming and shaming those that have failed to come up with a plan to convert their state-owned non-tradable shares into common tradable shares.
As many as 100 of the newly labelled S companies are expected to be unable to complete the process for reasons ranging from financial problems to corruption investigations and some may eventually be delisted.
'I am afraid that some listed companies may fail to complete the non-tradable share reform by the end of this year,' China Securities Regulatory Commission executive vice-chairman Tu Guangshao said in a recent interview. 'No regulation regarding the non-tradable share reform requires these companies to be delisted but obviously, some of them eventually will be.'