China Cuts In Half Taxes On Stock Market Transactions

China has cut in half taxes on stock transactions. As the Ministry of Finance and the State Tax Administration explains, this is aimed at “revitalizing the capital market and increasing investor confidence.”

The stamp duty of 0.1% will thus be reduced to 0.05%: no decisions of this kind have been made since 2008 when the tax was reduced from 0.3% to 0.1%.

“These interventions have historically boosted stock markets,” Chinese Academy of Social Sciences researcher Daixin He told China’s Xinhua news agency. This action allows to reduce the expenses for market transactions and ease the tax burden for investors, particularly for medium and small ones.

This provision is part of a targeted move by the Chinese government and authorities in general to revive stock markets at a delicate time, given concerns about Beijing’s economic performance and a chronic real estate crisis.