Lower Stamp Duty Helps Activate Stock Market - Commentary

Reducing stamp duty can not only activate the stock market by increasing investment income, but can also boost the return of listed firms and improve the valuation of high-quality companies, said the Beijing Business Today in a commentary. Stamp duty accounts for two-thirds of transactions costs, or 0.05% of the trade amount, while brokerage commissions and exchange fees are generally 0.025% in total. Meanwhile, if authorities exempt investors from taxation on loss-making transactions, this will help restore investor confidence at a time when retail investors’ performance is generally poor.