What is the impact of non tradable shares on market earnings

Non-tradable shares are not included in the metrics.

P/E ratio per common share per market** Earnings per common share per year, and earnings per share = profit after tax of the listed company The number of issued common shares of the company, because the denominator includes non-tradable shares, it is unscientific to use the P/E ratio as the only standard to measure **.

Investors calculate the P/E ratio, which is mainly used to compare the values of different **. Theoretically, the lower the P/E ratio, the more worthwhile it is to invest. It is not very reliable to compare P/E ratios across industries, countries, and time periods. It is more useful to compare the price-to-earnings ratio of the same kind**.

In mature markets, the net profit of listed companies corresponds to fully tradable shares; The net profit of China's listed companies corresponds to both tradable shares and non-tradable shares. The market for tradable and non-tradable shares** is completely different. So, when calculating the P/E ratio, is it based on outstanding shares** or non-tradable shares**?

Using the former will obviously inflate the P/E ratio, but using the latter will inflate the P/E ratio. The current calculation method used in China is based on the former, that is, the outstanding shares, which undoubtedly makes the current price-earnings ratio in an inflated state. It also makes the comparison between the current P/E ratio in China and the P/E ratio in mature markets meaningless.

Some people talk about the valuation of the price-earnings ratio, which is effective before the share reform, but it is difficult to say after the ban is lifted. Some of them do not consider the price-earnings ratio, but how to realize, the interest deposited in the bank after realization and the dividend level of listed companies compared, and some big non (especially privately held) after the lifting of the ban, I don't want to hold, take out a huge amount of money to play something else, this other people's mind, is not accurate.

In **, when there are fewer liquid shares, it generally means that the dealer occupies a dominant position in **, that is, the dealer is easy to control, and ** will be largely affected by the dealer. However, for listed companies, the circulating share capital is less than or equal to its share capital, and the general circulating share capital accounts for only a small part of it.

What is Tradable Share Capital?

In the ** trading market, the tradable share capital refers to the ** issued by the listed company, which is generally issued by the listed company and is allowed to be traded in the market. Generally speaking, the concept of tradable share capital will only appear in China**, because the ** issued by foreign companies after their official listing is fully tradable, in other words, the total share capital issued by foreign listed companies is equal to their tradable share capital. However, in China**, after the implementation of the equity division reform in 2005, corporate shares can be listed and traded, but there are still restrictions on the time and quantity, that is, the restricted tradable shares in the mouth of investors.

Hello, tradable shares: tradable shares** refer to the ** circulated on the Shanghai ** Exchange, Shenzhen ** Exchange and Beijing two corporate stock systems STA and NET. Since the China Securities Regulatory Commission was established in October 1992, the first listings before this were approved by each trading system itself.

After that, all the first listed circulation will be managed by the China ** Supervision and Administration Commission.

Non-tradable shares refer to the listed companies in China's ** market that cannot be freely traded in the trading market (including state shares, state-owned legal person shares, domestic and foreign legal person shares, initiating natural person shares, etc.); Except that the right to tradable shares is different from the tradable shares, other rights and obligations are exactly the same. However, non-tradable shares are not completely untradable and can be tradable through auction or transfer by agreement, which requires the approval of the CSRC for the transaction to take effect.

Hello: 1. Non-tradable shares refer to listed companies in China's ** market that cannot be freely traded in the trading market (including state shares, state-owned legal person shares, domestic and foreign legal person shares, initiating natural person shares, etc.); Except that the right to tradable shares is different from the tradable shares, other rights and obligations are exactly the same. However, non-tradable shares are not completely untradable, but they can be tradable through auction or transfer by agreement, but if this is done, the approval of the CSRC must be obtained before the transaction can be considered effective.

2. Tradable shares refer to the part that can be bought and sold in the market, that is, they can be freely circulated.

To put it simply, tradable shares are those that can be listed and traded directly, and non-tradable shares cannot be listed and traded.

Tradable shares - refers to the part that can be bought and sold in the ** market, that is, it can be freely tradable.

Non-tradable shares - refers to the part that cannot be bought and sold in the ** market, that is, it cannot be freely tradable.

Total share capital = A shares + H shares + state shares (corporate shares).

The total share capital includes both tradable and non-tradable shares. According to Sinopec, the non-tradable shares are state shares, and the tradable shares are A shares and H shares. (It also contains B shares, Sinopec does not contain B shares, and others contain B shares).

Non-tradable shares** mainly refer to state shares and corporate shares that cannot be listed and circulated temporarily.

Not in circulation!

It is not necessary to be a listed company to be issued, and a company that is not listed can also be issued, but it cannot be bought and sold in the market. ‍

**It is a certificate of ownership issued by a joint-stock company, and it is a kind of valuable certificate issued by a joint-stock company to each owner as a certificate of shareholding and to obtain dividends and bonuses in order to raise funds. Each share** represents a shareholder's ownership of a basic unit of the business. There is a listed company behind each **.

At the same time, each listed company will issue **.