Leo Zhang/Shanghai Daily news

Shares in Shanghai rose yesterday after shareholders approved two of the country's biggest firms to unload their state holdings, fanning optimism the share sale program will continue to proceed smoothly.
The Shanghai Composite Index, which covers yuan-denominated A shares and foreign-currency B shares, grew 0.90 percent to 1,138.88. The A-share Index added 0.90 percent to 1,196.72 while the B-share Index rose 0.86 percent to 65.20.
"It showed investors were bullish about the share-restructure overhaul," said Liu Yu, an Orient Securities Co analyst. "Compensation packages have been generally acceptable to minority stock owners after several rounds of negotiations."
China Yangtze Power Co, owner of the world's biggest hydropower project, and Citic Securities Co, China's biggest listed broker, had their proposals approved by shareholders on Friday to transfer state-owned non-tradable shares into free-floating entities.
The two firms were among 46 pilot companies picked by the government to ultimately dispose of as much as US$230 billion of state ownership in listed firms.
Under regulations, major stake holders have to compensate public investors for losses as a result of new equities flooding the markets. A two-thirds majority of holders of a company's traded stock need to approve an individual compensation plan.