China Leadership Monitor

Selling Down the State Share: Contested Policy, New Rules

Tuesday, April 30, 2002

Since the middle of 2001, the issue of reducing the government ownership stake in corporations listed on the Shanghai and Shenzhen Stock Exchanges has been high profile and highly contentious. This issue touches on many fundamental problems relating to the future of China's economic reforms, including the public ownership system, the development of capital markets, and the long-term social security of China's aging population. The twists and turns in Beijing's approach to this issue in recent months illuminates evolving decision-making processes and sheds light on the continuing role of Premier Zhu Rongji.