Theory on Transaction of the State-owned Stocks

There is no necessary to lower the index of A stock to solve the problem of non-circulation of the state share. This paper gives the way that sets different regulations on circulation system to sell T+1 system as time bargain. First, two markets with capital and participator independent to each other are set up, then two markets are gradually unified in several years, gradually reducing the transaction basis of semi-circulating stocks and A stocks in ten years from system of T+365 with lot size 5000 to system of T+1 with lot size 100. The reduction of difference in circulation system leads to reduction of difference in price, making the two markets unify after ten years. In this way, index of A stock will rise instead of dropping in the process of selling state share.