Media ININ Economy We Trust
Aug 27
China has reduced stamp duty on stock trading for the first time since 2008, in a major effort to restore confidence in the world’s second-largest stock market.
And the government said, in a statement today, Sunday, that the fees imposed on stock trading will be reduced by half, starting from August 28, according to Bloomberg News.
Trading booths have been buzzing with anticipation of a stamp tax cut since Beijing made a rare pledge last month to “revive stock markets and boost investor confidence”.
The tax cut is likely to lead to a spontaneous rally in the $9.6 trillion Chinese stock market, which is highly sensitive to political shifts affecting market liquidity.
The reduction will be welcomed by Chinese brokerages and quantitative hedge funds that use trailing trading strategies.
Data compiled by Bloomberg showed that foreign investors recorded net selling in Chinese stocks for 13 consecutive sessions until last Wednesday, the longest period ever.
