SAWT BEIRUT INTERNATIONAL

| 5 March 2024, Tuesday |

China forced to slash stamp duty on stock trading after loss of days of economic boom

China has reduced the stamp duty on stock trading by over 50%, with the changes set to take effect from Monday. This move is being interpreted as an effort to invigorate China’s ailing economy, which was recently characterized by the Wall Street Journal as having moved beyond its previous period of prosperity.
The Chinese finance ministry said in a brief statement on Sunday it was reducing the 0.1 per cent duty on stock trades “in order to invigorate the capital market and boost investor confidence”.

Earlier, it was reported that the authorities were planning to cut the duty by up to half after a key share index fell to nine-month lows.
“Such a policy will likely give a short-term boost to the market but won’t have much effect over the long run,” Xie Chen, a fund manager at Shanghai Jianwen Investment Management Co, said before the announcement. “The rebound could last for just two to three days, or even shorter.”

China takes up other measures to boost economy
Other than the finance ministry, the China Securities Regulatory Commission (CSRC) is also rolling out measures to revive market confidence in investing in listed companies.

The CSRC said on Sunday that China will slow the pace of initial public offerings (IPOs) and further regulate major shareholders’ share reductions.

Meanwhile, stock exchanges in China have lowered their margin financing requirements, according to the CSRC’s announcement.

    Source:
  • Wions