In an effort to boost its slumping markets, Chinese authorities are planning to cut the stamp duty on stock trading by as much as 50%.
Regulators in China have submitted a draft proposal to the country’s central government recommending that the duty on stock trading be halved.
A cut to the stamp duty could be announced as early as today (August 25), according to multiple media reports.
Any cut to the current 0.1% stamp duty on securities trading would be the first such reduction since the 2008 financial crisis.
A proposed cut of 50% comes after China’s leaders vowed in late July to revive the world’s second-largest stock market, which has been declining as the country’s economy stalls and a debt crisis in the property market worsens.
China’s blue-chip CSI300 Index has fallen to a nine-month low and is down 11% from an April peak as hopes for an economic recovery fade.
By comparison, the MSCI global stock market index is up 11% so far in 2023.
China’s securities regulator on August 18 unveiled a package of proposals that included support for share buybacks to help support the country’s $11 trillion U.S. stock market.
The securities regulator, as well as government officials in Beijing, have said that stabilizing the stock market is a top priority.