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Authorities Cut Levy On Stock Trades For The First Time Since 2008

CHINA STOCKS

On Sunday the China Securities Regulatory Commission cut the levy charged on stock trades from 0.1% to 0.05%, effective from today. The move is designed to boost confidence in the market. It is the first time the levy has been cut since April 2008.

  • The regulatory also announced it will slow the pace of IPOs and regulate major shareholder share reductions (see this link for more details).
  • It was also announced that the margin ratio for margin trading would be lowered to 80% from the current 100%. This would be effective from September 8.
  • On the data front, July industrial profits data released yesterday printed at -6.7% y/y, versus -8.3% prior (there was no consensus estimate).

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