Property rights trading is closely related with the market reform of State-owned enterprises. An increasing number of foreign businesses are investing in China through the purchase of shares, one form of property rights trading.

Property rights trading is inalienable to many economic activities in China, said Zhang Hailong, president with the Shanghai Property Rights Exchange which recorded a trade volume of over 48 billion yuan (US$5.78 billion).

Zhang believed that there will be more buyers who will purchase shares of State-owned enterprises on larger scales.

Share trading will become a major form of property rights trading, he said.

He also pointed out that property rights exchange will become a major channel for hi-tech companies to obtain venture capital by selling their stocks.

However, many in the investment circle call for the establishment of property rights trading law as soon as possible.

They also hoped for a nationwide market for property rights trading, which will surely bring better efficiency in capital reshuffling.

(Xinhua 01/31/2001)