The Tsinghua Tongfang Group, whose split share reform plan had been vetoed, and Sany Heavy Industry Co., whose reform plan had been passed last week, both witnessed their stock prices go up by about 10 percent on Tuesday.

The price of Tsinghua Tongfang Group, a high-tech firm controlled by Tsinghua University, rocketed 9.18 percent to 10.94 yuan per share on Tuesday, while that of Sany jumped 10.01 percent to 21.65 yuan per share.

Sany's good performance was not surprising, since its split share reform plan got passed last Friday by its shareholders. Tongfang's price growth, however, was beyond insiders' expectation,because its split share reform plan was recently vetoed by its shareholders.

The split share structure refers to the existence of a large volume of non-tradable state-owned and legal person-held shares. This means only about one-third of the shares in domestically listed firms float on the market. The structure puts public investors in a worse position than the actual controllers in making corporate policies and disposing of the firms' profits and assets.

For the first round of split share structure reform, four firms including Tsinghua Tongfang Group, energy producer Goldbull Energy Co., soft drink bottle maker Zijiang Enterprise and Sany Heavy Industry Co., an equipment and machinery producer, were selected by the government for the experiment aiming to make all their shares tradable.

Source: Xinhua