Minorities make their first move
29 December 2004
In another sign that market reforms are starting to have an impact, shareholders blocked a bid by Shanghai-listed Chongqing Department Store to issue additional stock, that move coming after this month's rule amendment giving minorities a bigger say in corporate decisions. New regulations, requiring motions to be carried by holders of at least half of a company's free-floating shares, were outlined in September but promulgated only in December. A China Construction Bank-backed fund led shareholders in opposing the new issue, arguing the retailer didn't need the money.