China stocks soar after measures to boost investor confidence
investor confidence, including halving the stamp duty on stock trading.
China's blue-chip CSI 300 Index jumped roughly 3% in early morning trade, on course for its best day since November, while the Hang Seng benchmark advanced more than 2%.
The finance ministry, in a brief statement on Sunday, said it was reducing the 0.1% duty on stock trades «in order to invigorate the capital market and boost investor confidence».
Separately, the securities regulator, China Securities Regulatory Commission (CSRC), said that it will slow the pace of initial public offerings (IPOs) and further regulate major shareholders' share reductions.
«The policy package sent a clear signal to boost investor confidence as the market hit the bottom,» said analysts at China Asset Management Co.
Shares rose across the board, led by securities brokers rallying about 7%. Other sectors, including real estate, insurance, new energy and construction engineering, jumped between 3.5% and 5%.
«A reduction in stamp duty would benefit securities brokers directly,» said analysts at BOC International (China) Co, as trading activity could increase after the cut.
The move comes as China's stock benchmark dropped to nine-month lows earlier this month, erasing all gains made following the reopening from COVID curbs, as the economic recovery lost steam.
Beijing has taken a series of measures, including a smaller-than-expected cut in a key lending benchmark last week.
