Chinese stock markets plunge after tax increase
Wednesday, May 30, 2007 In trading Wednesday, the Chinese stock markets plunged after the government tripled a tax on securities transactions. The so-called stamp tax was raised from 0.1% to 0.3% in an effort to cool the rapidly rising market. The Shanghai Composite Index of A-shares fell 6.5%. The CSI 300 fell 6.8%, with over half of the listed companies falling the single day limit of 10%. The market has already doubled in value this year, after rising 130% in 2006. It is estimated that some 300,000 new brokerage accounts…
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