14-12-2013, 02:28 PM
It will provide more channels of funding...
China to unveil rules on preferred shares in January
BEIJING — China’s securities regulator said yesterday it would announce rules on preferred stock issuance next month, as part of a reform drive to boost funding channels for firms and restore confidence in equity markets.
Investors have long lamented that too many listed companies are required to sacrifice profits for wider policy aims and many see the use of preferred shares as a way to reduce government influence and boost the value of other investors’ holdings.
Preferred shares are financial instruments that have characteristics of both debt and equity.
They typically do not trade on the open market and carry no voting rights. They pay fixed dividends, enjoy seniority over common stockholders in the event of bankruptcy and do not dilute net profit attributable to shareholders.
...
http://www.todayonline.com/business/chin...es-january
China to unveil rules on preferred shares in January
BEIJING — China’s securities regulator said yesterday it would announce rules on preferred stock issuance next month, as part of a reform drive to boost funding channels for firms and restore confidence in equity markets.
Investors have long lamented that too many listed companies are required to sacrifice profits for wider policy aims and many see the use of preferred shares as a way to reduce government influence and boost the value of other investors’ holdings.
Preferred shares are financial instruments that have characteristics of both debt and equity.
They typically do not trade on the open market and carry no voting rights. They pay fixed dividends, enjoy seniority over common stockholders in the event of bankruptcy and do not dilute net profit attributable to shareholders.
...
http://www.todayonline.com/business/chin...es-january