In response to the ongoing crisis in the Chinese property sector, China is reportedly planning to decrease the stamp duty on domestic stock trading by up to 50%. This move is aimed at providing support and stability to the struggling equity market. If approved, this would be the first reduction in stamp duty since 2008, signaling the urgency of the situation.
The decision to cut the stamp duty comes at a critical time for Chinese equities, which have endured a series of setbacks in recent weeks. By lessening the burden on stock traders, authorities hope to boost activity in the market and restore investor confidence. The draft proposal for this reduction has already been submitted and an official announcement is expected in the near future, potentially as early as today.
Since the financial crisis in 2008, China has not resorted to cutting stamp duty, making this move all the more significant. It highlights the severity of the current turmoil facing the Chinese property market and its potential impact on the overall economy. The implementation of this measure could serve as a lifeline for investors and potentially provide the much-needed stability required to navigate through these challenging times.
