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Only one-third of all shares of all listed mainland China companies are allowed to trade. The remaining two-thirds are held by government entities, businesses controlled by government entities or businesses controlled by those with close connection to government entities. Thus, the price of any share on a Chinese exchange is not a reflection of "value," since price will plummet dramatically if and when government held shares come on the market. Here is a quick link from a Chinese publication: http://www.chinadaily.com.cn/en/doc/2004-01/20/content_301641.htm Will find you an article from a western publication if you need it -- chinese media is government controlled, so with this link you are reading an "approved" story.
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