All the 50 companies listed in the small and medium-sized enterprise (SME) board in the Shenzhen Stock Exchange have started the reform process aiming to make all shares tradable, the Economic Daily reported on Tuesday.

The 10 SMEs that participated in the previous pilot reforms have witnessed their reform plans passed by shareholders. Another 34 companies have publicized their plans, waiting for vote results in shareholders' meetings.

The remaining 6 companies have also submitted their reform drafts to relevant authorities, after the approval of which they will be publicized and shareholders will vote on them, the Economic Daily said.

China decided this year to end the split share structure, which was seen as the major problem in China's stagnant stock market as a large part of shares were not allowed to be traded on the market.

Figures show that 14 SMEs publicizing reform plans on Monday agreed to compensate 2.9 shares per 10 shares to tradable shareholders on average so as to make all their shares tradable, while those 10 involved in the pilot reform gave 3.78 shares per 10 shares as compensation on average, according to the newspaper.

The SME board in China will first finish the split share reform. Any SMEs making initial public offerings (IPO) in the future will have fully tradable shares at the beginning, Wang Xian, an official with the China Securities Regulatory Commission said recently.

The non-tradable shareholders of 15 SMEs have promised not to reduce their shareholdings in three years after the reform, so as to protect the interests of tradable shareholders, the newspaper said.

(Xinhua News Agency September 21, 2005)