Abstract:

The paper made a comprehensive and systematic introduction on stock allocation which is an effective instrument to reduce state-owned stocks. As far as its structure is concerned, the paper firstly centered on the basic concept and market effects of stock allocation; secondly, the author summarized the common characteristics of listed companies which meet the demand of stock allocation and then selected 11 samples from Shanghai and Shenzhen Exchanges. The last part of paper made a thorough analysis on a case of stock allocation in 1999.

Key words: decrease of holdings of state-owned shares, stock allocation, listed company, share structure