2023-08-27 18:21:18
China on Sunday announced a halving of the tax on stock market transactions, a significant measure intended to restore confidence in the world’s second-largest stock market amid an economic slowdown.
This reduction, which will be effective from Monday, is the first since 2008.
“In order to boost the capital market and boost investor confidence, the stamp duty on securities transactions will be halved from August 28,” the finance ministry and the administration said in a joint statement. in charge of taxation.
The tax was until now 0.1%.
This measure was eagerly awaited by the stock markets of mainland China, shaken by the poor health of the Chinese economy, with a debt crisis in real estate, weak consumption and record youth unemployment.
The CSI 300 index of major capitalizations on the Shanghai and Shenzhen stock exchanges fell regarding 4% in 2023, following two consecutive years of decline, according to the financial information agency Bloomberg.
This fall is partly explained by the lack of a major economic recovery following the Covid-19 pandemic in China, with the authorities still reluctant to embark on a real recovery plan.
With the measure announced on Sunday, the government aims to bring back investors who have lost confidence in Chinese assets.
The drop in this tax should generate significant transactions from Monday when quotations resume.
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