Stock Transfer Tax Triples — China Finance Ministry to Stock Market: We’d Like a 15-20% Correction?

After months of hints and proclamations of irrational exuberance from official and unofficial (Li Ka-shing) sources, China’s Ministry of Finance yesterday announced an increase in the stamp tax on stock transactions to 0.3% from 0.1%. The Chinese markets fell steeply.

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The reaction from Morgan Stanley:

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Citibank claims investors were over-reacting.

On what basis do these pundits claim the Finance Ministry is looking for a 15-20% correction? And then state that a 40-50% correction would induce the Ministry to invoke measures to stimulate the market?

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This page for citizen reaction: some very nasty comments indeed.


Posted by: top china suppliers on Wednesday, May 30th, 2007