Shanghai Daily news

Shares in Shanghai fell slightly yesterday after small shareholders of Tsinghua Tongfang Co, one of the four pioneer companies in a stock reform program, rejected its compensation proposal on Friday, increasing uncertainties in the market.
The shanghai Composite Index, which tracks both yuan-denominated A shares and hard-currency B shares, eased 0.18 percent to 1,106.29. The A-share Index dipped 0.17 percent to 1,161.41, and the B-share Index shed 0.7 percent to close at 68.54.
"The rejection of Tsinghua's compensation offer indicates that the reform of the split share structure in listed companies will not reach the goal so soon," said Wang Xiaomin, a Shanghai-based analyst with Xiangcai Securities Co.
In addition, he thought the vote results of the first batch of companies to test the pilot program will affect the implementation of the second round.
"Tsinghua's rejection may increase the possibilities that the other two companies will also see the same negative consequences," he added.
Shareholders of Shanghai Zi Jiang Enterprise Group Co, a packaging materials maker, voted yesterday on the compensation plan for its nontradable shares conversion. The result was not available before the market closed, which also contributed to some uncertainties among investors.
Baoshan iron and Steel Co lost 2.73 percent to 4.63 yuan (55 US cents).