Chinese stock market news has had some changes. China’s prolonged economic slump has had investors worried for many months now. However, the government of China is finally making moves that are raising investors’ confidence. They have announced tax cuts for trading on the stock market, the first such cut since 2008. The moves by the government have been in response to investor apathy. Investors have been abandoning and dumping Chinese stocks worth billions in dollars over the last few weeks due to this economic slump.
They had a stamp duty on trading stocks recently at 0.1%. They halved this figure to 0.05% this Monday, as the State Administration of Taxation and the Ministry of Finance pushed this action through. The intention was for this move to boost confidence in Chinese markets and liven up their activity. It could have a significant impact on Chinese tech stocks.
This move has already had effects on the stock market, and Chinese stocks have been rising this Monday. This jump was temporary, however, and the boost ceased soon afterwards. China’s economic problems go far beyond this small measure. Worries continue regarding China’s crises regarding property and the general slow growth in the country. China’s economy news has generally been poor. Investors’ concern about these subjects caused them to pull back for the time being.
The last such reduction was in 2008, as we stated earlier. At the time, the Chinese government dropped the rate down to 0.1% from the previous 0.3%. This was in response to the 2008 financial crisis, which encompassed the whole world. At the time, this was a huge boon to the Chinese economy, boosting Shanghai markets by almost 10%. Up to that date, this was the second biggest gain in a single day ever.
This time around, Hong Kong’s HSI index rose 3.4% this Monday, but this flattened to a 1% rise by the end of the day. The Shanghai Index rose 5% early on before plummeting to a 1.1% overall rise. We shall see what this means for Chinese stock market news in the future.
