China Stocks rise on stamp duty reduction proposal

The Mainland China share market finished session higher on Friday, 04 June 2021, as investors sentiments boosted up after the Legislative Affairs Commission of the National People's Congress (NPC) Standing Committee said government has proposed an 'appropriate reduction' to stamp duty.

However, market gains capped amid Sino-US tension after U.S. President Joe Biden signed an executive order on Thursday that bans U.S. entities from investing in dozens of Chinese companies with alleged ties to defence or surveillance technology sectors.

At closing bell, the benchmark Shanghai Composite Index advanced 0.21%, or 7.63 points, to 3,591.85. The Shenzhen Composite Index, which tracks stocks on China's second exchange, rose 0.63%, or 15.01 points, to 2,407.65. The blue-chip CSI300 index added 0.51%, or 26.99 points, to 5,282.28.

 

The best performing sectors in the Shanghai Stock Exchange were Health Care Distributors (up 10%), Vintners & Others (up 5.7%), Property & Casualty Insurance (up 4.6%), Fishery Products (up 4.58%), and Yellow Wine (up 4.56%), while the worst performing sectors were Zone (down 4.12%), Marine Ports (down 3.8%), Health Care Technology (down 3.73%), Leisure Equipment & Products (down 3.21%), and Hypermarkets & Super Centers (down 2.98%).

The best performing sectors in the Shenzhen Stock Exchange were Education Services (up 4.56%), Motorcycle (up 4.31%), Paint (up 4.18%), Telecom Value Added Service (up 3.43%), and Diversified Banks (up 3.24%), while the worst performing sectors were Soft Drinks (down 5.33%), Heating or Other Utilities (down 4.24%), Oil & Gas Exploration & Production (down 3.21%), Oil & Gas Refining & Marketing (down 2.96%), and Thermal Power (down 2.66%).

The top performing blue chip stocks of the CSI300 index were China Merchants Bank Co (up 2.22%), Kweichow Moutai Co (up 1.32%), Ping An Bank Co (up 3.24%), WuXi AppTec Co (up 2.26%), BYD Co (up 3%), Fuyao Glass Industry Group Co (up 6.42%), Hangzhou Tigermed Consulting Co (up 4.51%), and Industrial Bank (up 1.31%), while the worst performing blue chip stocks were China Tourism Group Duty Free Corp (down 1.93%), and BOE Technology Group Co (down 2.88%).

At a press conference on Friday, Zang Tiewei, a spokesman for the National People's Congress Standing Committee, the nation's top legislative body, said that there were plans to amend the draft deliberations on laws related to stamp duty, such as lowering the rate and defining the scope of the levy.

China has adjusted the stamp duty rate on stock transactions a total of 10 times. The last was in September 2008, when Beijing scrapped the levy on stock buying and kept the rate on selling at 0.1 per cent. Stamp duties are also applied to other areas such as property transactions in China.

Powered by Capital Market - Live News