That’s the stock trading 印花税 in Chinese. It was only a week ago somebody from department of finance denied the “rumor”, now they ate their own words. They raised rate from 0.1% to 0.3% for stock trade.
I don’t know how the market will react to this. Will it blush off like it did on May 21 amid the raise of interest rate? We shall see.
Seriously, I think the goverment could put those money (I mean increased stamp tax revenue) into education, and health care, that will be a wonderful thing. We all want a harmonious society, don’t we?
You know I am kidding, do you? We all know the bubble is there, but how much bubble do we got? Is bubble going to burst very soon? These are the questions the investors (more accurately speculators) in China should ask.
In my mind, there are fundamental reasons for this rising of Chinese equity values: over liquidity (too much money, too little stocks); improvement of company fundamentals including rapid growth; Gu Gai (the stock reform which remove cloud from the floating shares), etc.
I put it in my Yahoo calendar a while ago. But I have not added my positions because it did not fall to the range I wanted to pull my trigger. Although there are heavy insider sellings lately.
“Shareholders of record May 31 will get an additional share for each they hold on June 14”, see this announcement for more details.