Shanghai stock market: waiting for US$ 78 bn to soak up

The mood at the Shanghai stock market remains optimistic as it prepares to soak up US$ 78 billion worth of previously non-tradable shares, report different media. That is the beginning of a much larger operation as there are still US$ 250 billion worth of shares that will be released on the markets in the years to come.
The rumor of a similar operation caused at the beginning of this century a plunge of the stock market that continued till last year, because shareholders feared the loss of the value of the existing stock. China's state-owned companies typically only floated one-third of their assets on the stock market, keeping the majority under governmental control.
But unlike the situation at the beginning of this century, now the shareholders have more confident in this massive operation, partly because also the liquidity of the market is no problem and the government want to dose the process without disturbing the market too much.