The fee charged for stock trading of 0.1% will be reduced.
Dubai – Al Arabiya.net
Posted on: August 27, 2023: 05:06 PM GST Last updated: August 27, 2023: 07:03 PM GST
China will halve stamp duties on stock trading, starting Monday, in its latest attempt to boost the market as the world’s second-largest economy’s post-Covid-19 recovery falters.
The Ministry of Finance said in a brief statement today, Sunday, that it will reduce the 0.1% fee on stock trading “in order to stimulate the capital market and enhance investor confidence.”
Reuters reported on Friday that authorities plan to cut fees by up to half, after a major stock index fell to a nine-month low.
“Such a policy is likely to give a short-term boost to the market, but it won’t have much impact in the long term,” said Shi Chen, a fund manager at Shanghai Jianwen Investment Management, before announcing the decision.
“The recovery may only last for two or three days, or even shorter,” he added.
In addition to the Ministry of Finance’s move, the China Securities Regulatory Commission is implementing measures to enhance market confidence in investing in listed companies.
The committee said today that China will slow down the pace of initial public offerings and further regulate equity cuts by major shareholders.
China’s leaders pledged late last month to revitalize the stock market, the world’s second-largest, which was reeling from a faltering post-pandemic recovery and a worsening debt crisis in the real estate market.
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2023-08-27 14:54:39
