What is more, foreigners are not supposed to be able to buy the non-tradable shares so-called legal-person shares with which the state keeps control of enterprises.

ECONOMIST: Casino capital

Weijian Shan, managing director of Newbridge Capital, a Hong Kong venture-capital house, and one of Baosteel's four independent directors, says its particular scheme for non-tradable shares is both wrong and illegal.

ECONOMIST: A dispute over the planned release of government shares