China's stamp duty on stock transactions will be cut in half from Monday, the first such reduction since 2008, in an effort to restore confidence in the world's second-largest stock market in the midst of economic slowdown.
China halved the stamp duty on stock transactions effective Monday to invigorate the capital market and boost investor confidence, China's Ministry of Finance and the State Taxation Administration announced Sunday in a statement.
The stamp duty on stock trading is currently 0.1 percent Chinese markets have eagerly awaited the reduction of the duty from its current rate of 0.1% after being shaken by slower-than-expected growth figures, as well as a property debt crisis, weak consumption and record youth unemployment.
The CSI 300 index of the top stocks traded on the Shanghai and Shenzhen exchanges has fallen by around 4 percent so far this year, following two consecutive years of declines.
The fall can be partly blamed on China's slowing economic recovery following the COVID pandemic.
Source: Qatar News Agency