Chinese Authorities to Reduce Stamp Duty on Domestic Stock Trading by 50%

Based on three people with knowledge of the matter, Chinese authorities are planning to cut the stamp duty on domestic stock trading by up to 50% in an effort to revitalise the country's struggling stock market.

Chinese regulators, including the Ministry of Finance, submitted a draught proposal to the cabinet earlier this month, according to two of the people, adding that a decision could be made and announced as soon as Friday.

According to the two people, the proposal to reduce the current 0.1 percent stamp duty on securities trading suggested a cut of 20% or 50%, the first such cut since 2008. The quantum of the cut, which has not previously been reported, is likely to be set at 50%.

The State Council Information Office, which handles media inquiries on the government's behalf, did not respond immediately to a faxed request for comment. Both the Ministry of Finance and the China Securities Regulatory Commission (CSRC) did not respond immediately.