THE mainland stock markets are bracing for fresh pressure in May when a massive number of new shares will become freely tradable after being locked up under local regulations.

    A total of 284.1 billion yuan (US$40.6 billion) worth of shares will become freely tradable in May at the expiry of a mandatory lock-up period, the Shanghai Securities News reported yesterday.

    This is up nearly 90 percent from 150 billion yuan of newly tradable shares in April but was still in line with the monthly average for the whole year, according to the paper.

    The mainland stock markets hit a historic high in October last year, but then slumped by nearly half in the ensuing months, partly due to the overhang of these shares.

    Only in late April did the market stage a rally, encouraged by a decision by policymakers to cut a stock transaction tax to one third.

    Out of the shares that will become tradable in May, slightly more than half will be in Bank of Communications, the newspaper said. (SD-Agencies)