HONG KONG/BEIJING, Aug 25 – Chinese authorities are planning tocut the stamp duty on domestic stock trading by as much as 50%, three people with knowledge with the matter said, in a further attempt to revitalise the country’s struggling stock market.
Chinese regulators including the Ministry of Finance, under the guidance of the State Council, submitted a draft proposal to the cabinet earlier this month, said two of the people, adding a decision could be made and announced as soon as Friday.
The proposal to reduce the current 0.1% stamp duty on securities trading suggested a cut of either 20% or 50%, which would be the first such cut since 2008, the two people said.
The quantum of the cut, which has not been reported before, is likely to be set at 50%, they said.
All the sources declined to be named as they were not authorised to speak to the media.
The State Council Information Office, which handles media queries on behalf of the government, did not immediately respond to a faxed request for comment. The Ministry of Finance and the China Securities Regulatory Commission (CSRC) did not immediately respond either.
(Reporting by Hong Kong and Beijing newsrooms; Additional reporting by Shanghai newsroom; Editing by Sumeet Chatterjee and Lincoln Feast.)