The problem is also serious in auto production.

Investment mania has been evident in the ferroalloy, coke, calcium carbide, automobile and copper smelting sectors.

The supply potential has left demand far behind.

Chinese oil companies need to go overseas to seek energy assets and the government encourages that. The price at which they pay for the assets must still be within the limits of the companies.

Promising to float stocks at a premium means if companies want to sell more stocks, they must ensure their market prices are high enough. The move will give public investors a bigger say in the share sale issue.

After a five-year plunge, we'll finally wriggle out of the pattern this year. Funds are expected to flow into the market as the result of expectation that the stock shakeup will create a better investment scenario.