China has approved the sale of state holdings in certain select companies.

The program is a trial that will include a small number of companies, according to the China Securities Regulatory Commission.

This is the third try at resolving the problem of the sale of state holdings in Chinese companies, after unsuccessful attempts in 1999 and 2001.

The announcement does not say which sectors and companies will participate in the trial program. Rules for the trial take effect immediately and include a requirement that the commission and two-thirds of shareholders must approve the sales.

This has the effect of giving the state veto power over the transactions. In addition, purchasers of the state shares may not sell them in the first year after purchase; after that they will only be able to sell a maximum of 5 percent of a company’s equity in any 12-month period.

The state holdings involved in the trial program amount to approximately two-thirds of the equity in businesses that have a stock market value of $400 billion.