Over the past five years, the Shanghai index has been the worst performer among the world’s 10 biggest stock markets with a 52 percent slide, according to data compiled by Bloomberg. The index dropped 0.6 percent yesterday.
The government last cut the stamp duty on Sept. 19, 2008. It’s a levy on share transactions imposed by the finance ministry that’s considered the costliest of equity fees.
“When we cut the stamp duty, it’s always followed by a technical rebound,” Hong said. In the second week of 2008, they cut the stamp duty and also the interest rate. We had a small rebound, but we all know from September to November stocks went down substantially further.’’
Trading charges will also be cut as much as 26 percent for futures exchanges in Shanghai, Zhengzhou and Dalian, the securities regulator said yesterday. The China Financial Futures Exchange will reduce transaction fees by 28.57 percent, it said.
As a result, futures market costs may drop by 1 billion yuan, the CSRC said. The Shanghai and Shenzhen bourses earlier lowered fees levied for trading A shares by 25 percent on June 1. The regulator also reduced supervision charges on the nation’s stock and futures exchanges this year.
“The cut in trading fees itself won’t have a big impact on the market,” said Zhang Ling, general manager at Shanghai River Fund Management Co. “But the prospect that the government will follow up with more market-boosting measures such as the suspension of IPO sales going forward may have investors reacting more positively.”