Shanghai Daily news

Shanghai stocks dived to an eight-year low yesterday after China’s securities regulator said it would allow more companies to dispose stateowned shares, fanning concern prices of existing shares will be reduced.
“Concern over a glut of equities punctured the market causing investors to stay on the sidelines,” said Zhang Li, a Huatai Securities Co analyst.
The Shanghai Composite Index, which covers yuan-denominated A and foreign-currency B shares, eased 2.03 percent to 1,039.19, the lowest close since February 27, 1997, when it tumbled to 1,025.30. The A-share Index lost 2.03 percent to 1.090.64 and the B-share Index shed 1.79 percent to 65.99.
The Chinese government plans to speed up reform of the stock markets by allowing a second batch of companies to unlock state holdings, said the China Securities Regulatory Commission in a statement.
Financial regulators will choose enterprises more representative of their industries than the pilot four firms in the first batch last month, the statement noted. Companies with poor management or misconduct will be excluded from the trial program, the statement said.
China Petroleum & Chemical Corp, Asia’s biggest oil refiner, slumped 2.54 percent to 3.46 yuan (42 US cents).
China Yangtze Power Co, owner of the world's biggest hydropower project, lost 1.29 percent to 7.68 yuan.