Shanghai Daily news

Shares in Shanghai fell yesterday after a media report said a number of companies in the trial share sale program will practice their own fundraising plans after the success of the pilot scheme, fueling concerns of a tight money supply.
The Shanghai Composite Index, which covers both yuan-denominated A shares and hard-currency B shares, dropped 1.27 percent to 1,101.49.
The A-share Index dropped 1.28 percent to 1,156.71, and the B-share Index trimmed 0.33 percent to end at 66.49.
"It's certain the share structure reform will unlock a glut of stocks," said Wei Wei, a trader at West China Securities Co Ltd. "No doubt that companies' own additional shares sale and other fundraising practices will bring more pressure on the market."
In the second round of the trial program launched last weekend, 17 of the 42 companies named by the regulator filed applications for the share sale or to issue convertible bonds, according to the Shenzhen Special Zone Daily.
However, 15 of the 17 have yet to carry out their fundraising plans. These 15 companies will likely continue their plans to raise money for future growth after finishing the share conversion, the newspaper said. The report cited an unidentified industry insider and added the floating of new shares may also resume in the second half of this year.
"Fundraising is an inevitable challenge the market should face, though the country has accelerated the pace of reforms to tackle the split structure of publicly traded firms," Wei said.