2023-08-28 15:29:00
Xinhua News Agency, Beijing, August 28th Topic: The halving of stamp duty on securities transactions releases a clear and positive policy signal
Xinhua News Agency reporters Liu Hui, Shen Cheng, Yao Junfang
The Ministry of Finance and the State Administration of Taxation announced on the 27th that in order to activate the capital market and boost investor confidence, starting from August 28, 2023, the stamp duty on securities transactions will be halved. The stamp tax on securities transactions, which is of concern to all parties, is ushering in an adjustment. What signals are released behind this?
Industry insiders pointed out that the meeting of the Political Bureau of the Central Committee of the Communist Party of China held on July 24 clearly stated that “the capital market should be active and investors’ confidence should be boosted”, and the tone of the capital market was more positive and the direction was clearer. The reduction of the stamp duty rate on securities transactions this time fully reflects the central government’s firm attitude towards an active capital market and its confidence in caring for the stock market, and has released a clear and positive policy signal.
Reduction in stamp duty rate on securities transactions boosts the market
The previous reductions in stamp duty rates for securities transactions have boosted the capital market, and this reduction in tax rates has also significantly boosted market sentiment. As of the close on the 28th, individual stocks rose more and fell less, and the turnover of the Shanghai and Shenzhen stock markets exceeded 1.1 trillion yuan. The Shanghai Index reported 3098.64 points, up 1.13%; the Shenzhen Component Index reported 10233.15 points, up 1.01%; the ChiNext Index reported 2060.04 points, up 0.96%.
Data show that in 2022, my country’s securities transaction stamp duty revenue will reach 275.9 billion yuan. In the first seven months of this year, the stamp duty revenue from securities transactions reached 128 billion yuan. He Daixin, director of the Financial Research Office of the Chinese Academy of Social Sciences’ Institute of Financial and Economic Strategy, said that under the current situation of high financial revenue and expenditure pressure, the introduction of this policy is an obvious signal, which is to “reduce” financial revenue in exchange for “increasing” market vitality. .
He Daixin said that judging from the previous adjustments, the lowering of the stamp duty rate for securities transactions can not be ignored in activating the financial market, especially the securities market. In the face of the current complex economic situation and the new environment for the development of the securities market, the reduction in tax rates will not only substantially reduce transaction costs, but also play a very positive role in building confidence in the securities market.
Reduce market transaction costs and release more liquidity to the market
The halving of the stamp duty on securities transactions is an important tax policy tool to reduce the cost of securities transactions and increase the activity of securities transactions. The reduction in the tax rate is 50%, and the policy effect of reducing the tax burden for the majority of investors is direct and inclusive. This will help increase investors’ willingness to trade and release more liquidity to the market.
There are more than 220 million individual investors in my country’s stock market, accounting for 99.76% of the investors in the whole market. Among them, investors who hold less than 100,000 yuan and 100,000 to 500,000 yuan account for 87.87% and 8.12% respectively. Zhao Xijun, co-director of the China Capital Market Research Institute of Renmin University of China, believes that reducing the stamp duty on securities transactions will benefit the majority of small and medium-sized investors through tax reduction and profit-sharing policies, and make the orientation of tax inclusiveness more fully reflected in the capital market dominated by small and medium-sized investors.
Zhao Xijun said that the policy adjustment of the stamp duty on securities transactions is a very effective benefit to investors and a substantial benefit to the securities market. The reduction of the stamp duty rate for securities transactions is conducive to reducing market transaction costs and reducing the burden on investors. It reflects the policy orientation of tax reduction, fee reduction, profit sharing, and benefiting the people. It will have a significant effect on activating the capital market and improving investor confidence.
The “Three Arrows” of Regulatory Policies Inject More Confidence in the Market
It is worth noting that following the announcement of the policy of halving the collection of stamp duty on securities transactions, the China Securities Regulatory Commission also released three consecutive policy measures on the evening of the 27th, continuing to send positive policy signals to the market.
In Zhao Xijun’s view, the CSRC’s policy of “shooting three arrows together” responds to the focus of the market’s recent attention and appeal. Whether it is “optimizing IPO and refinancing regulatory arrangements”, “further regulating shareholding reduction behavior”, or “reducing the margin ratio of financing by stock exchanges”, it will promote a more virtuous cycle of investment and financing and inject more confidence into the market.
After the meeting of the Political Bureau of the Central Committee of the Communist Party of China held on July 24 clearly stated that “the capital market must be activated to boost investor confidence”, the regulatory authorities have successively issued a series of policy measures, including the optimization of refinancing interest rates and the reduction of the settlement reserve ratio , the reduction of securities transaction handling fees, etc. On August 18, the China Securities Regulatory Commission clearly implemented a package of policy measures for this important decision-making deployment, responding to market concerns.
“The regulatory authorities’ ‘three arrows’ continue to respond to the market’s concerns regarding active capital market policies, which will play a key role in stabilizing market confidence. The continuation and intensity of reforms on the investment, financing, and transaction ends of the capital market are worth looking forward to. “Said Hu Xiang, chief analyst of the financial industry at Soochow Securities.
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