Topic: Stock Trading News – Stocks fall further on rumors of more curb-s – The Standard
Chinese stocks dropped Friday for a second time in three days after the central government tripled the tax on stock transactions to cool a sizzling market that economists worry may be creating a price bubble. Rumors that the government planned to impose a capital gains tax or take other strong measures to further cool the market also put pressure on shares. The Shenzhen Composite Index fell for the third straight day, ending down 4. Many analysts and fund managers said they thought a capital gains tax was extremely unlikely, especially since the mainland market had already been showing signs of cooling after the surprise hike Wednesday in the stock trading tax. Hu Bing, deputy director-general of the market supervision department at the China Securities Regulatory Commission, said authorities want to roll out more products to broaden investor options, such as real estate investment trusts and listed infrastructure funds. Hu acknowledged a “liquidity surplus problem” that is contributing to overheating of the Chinese stock market and noted that hot-money inflows through illegal channels are exacerbating the problem. read more
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