HONG KONG/BEIJING (Reuters) – Chinese authorities are considering a reduction of up to 50% in stamp duty on domestic stock market transactions, three sources familiar with the matter have learned, in order to revive a market of Chinese stocks struggling.
Chinese regulators submitted a draft to the government this month, two of the sources said, adding that a decision could be made and announced as early as Friday.
The proposal would cut stamp duty on stock exchange transactions, currently at 0.1%, either 20% or 50%, which would be the first such cut since 2008, the two sources said.
The magnitude of the decline will likely be set at 50%, they added on condition of anonymity.
The State Council Information Office, which handles media inquiries on behalf of the government, did not immediately respond to a request for comment. The Ministry of Finance and the China Securities Regulatory Commission (CSRC) also did not respond.
(Reporting by the offices of Hong Kong and Beijing; with the contribution of the office of Shanghai, Blandine Hénault for the French version)
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