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Chinese securities regulators have proposed a series of changes to boost domestic markets in recent weeks.
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Chinese stocks rose on Monday after the government said it would cut tax on trading and take other steps to boost capital markets.
China’s Ministry of Finance said on Sunday that it will halve the stamp duty on securities transactions, to 0.05%, starting Monday. This is the first time the tax has been cut since 2008.
The measure aims to “invigorate the capital market and boost investor confidence,” according to the Chinese government-backed Global Times newspaper. China’s securities regulator also plans to limit new listings, which could help balance supply and demand, and ease margin rules for buying securities.
Hong Kong’s Hang Seng Index rose 1.0%. Big technology companies were among the gainers
Ali Baba
(Stock symbol: BABA), up 1.7%
JD.com
(Dinar), up 1.0%. in local trade.
American depository receipts
Ali Baba
Up 0.9% in premarket trading and ADRs up 0.9%
JD.com
It increased by 1.5%.
The move is the latest in a series of efforts to raise confidence among Chinese investors in the face of the country’s ailing economy and persistent tensions between the United States and China.
Recent proposals by the China Securities Regulatory Commission ranged from introducing longer trading hours to encouraging share buybacks by listed companies. However, such reforms may not be enough to build long-term confidence on the part of foreign and domestic investors as they watch potential fallout from the company’s ailing real estate sector, which accounts for 70% of Chinese household wealth.
Write to Adam Clark at [email protected]
