China has for the first time included firms that have listed B shares in its state share reform programme, state media said on Monday, as regulators extend a controversial plan to float over $250 billion in state holdings to all 1,400 of the country's listed firms.
Property developer Vanke Co Ltd and bicycle maker Shanghai Forever Co Ltd were among a new batch of 21 firms to join the reform, the Shanghai Securities News said.
Both have floated B shares, securities that foreigners can freely buy.
Beijing revived the state share sell-off scheme in April in an effort to enhance transparency and finance a patchy pension system. It initially targeted only those firms with A shares, stocks open only to selected foreign investors.
To appease shareholders worried that a flood of state shares would depress the value of their investments, regulators have encouraged state parents of companies participating in the reform to compensate public shareholders through a mix of bonus shares, warrants and cash.
Listed firms must also secure shareholders' approval prior to selling off state shares.
China said in August it would bar owners of so-called H shares - domestic firms' Hong Kong-listed stocks - and B shares from having a say in the complex reform process.
Firms so far participating in the share sell-off include top Chinese steel mill Baoshan Iron and Steel Co Ltd and Three Gorges Dam joint-operator Yangtze Electric Power Co Ltd.
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