Bloomberg News (August 15) quoted people familiar with the matter report that China is considering making a decline in the stamp tax rate of stock transactions.This will be the first time since 2008, and it is also a major measure to boost the confidence in China's stock market.
People familiar with the matter said that according to the instructions of the State Council of China, regulators, including the Ministry of Finance, are discussing the drafting plan.People familiar with the matter also said that the details of the timing and amplitude of the downward downgrade have not yet been determined, and it cannot guarantee that the senior leaders of China will approve the plan.
At present, China's stock trading stamp tax rate is 0.1%.Bloomberg reports that the Chinese stock market is highly sensitive to changes in policies that affect market liquidity. The reduction in tax rates may make the Chinese stock market with a scale of US $ 9.9 trillion (S $ 13.44 trillion), which will be subconsciously encouraged and will be beneficial.Chinese securities firms and quantitative hedge funds adopting a fast trading strategy.
From a wider level, the rise in the stock market will help the Chinese government boost consumers and corporate confidence.
Due to the weakness of the stock market this year, the family fiscal situation has been dragged down by the downturn in the employment market and the decline in housing prices, China is facing greater pressure on consumption and capital expenditure.Beijing rarely stated last month that "active capital markets and boosting investor confidence" have caused the market to guess the decline in stamp duty.
China has adjusted the stamp duty several times in the past.In 2008, after the stock market fell, China had greatly reduced the tax rate in April, prompting the following year to get out of the bull market.In May 2007, China raised the tax rate to cool down the rising market that attracts 300,000 investors per day.
