Ups and downs of shares tax since 1990
Stamp duty was first introduced in Shenzhen Stock Exchange in 1990 with sellers and, later, buyers paying 0.6 percent tax.
October 10 1991 Shanghai and Shenzhen stock exchanges lowered the tax rate to 0.3 percent. The Shanghai Composite Index rises 1 percent and continues to rise over the next six months.
June 1992 State Administration of Taxation and National Reform Commission issued regulations that the tax rate should be 0.3 percent.
May 10 1997 Duty raised to 0.5 percent. The Shanghai Composite Index rises 2.26 percent, but loses nearly 200 points in the following trading days.
June 12 1998 Rate lowered to 0.4 percent. Shanghai shares advance 2.65 percent the next day.
June 1 1999 Duty for hard currency B shares lowered to 0.3 percent. B shares surge nearly 50 percent.
November 16 2001 Duty pruned to 0.2 percent for A and B shares. The Shanghai Composite Index jumps 6.42 percent.
January 23 2005 Duty lowered to 0.1 percent. The index adds 1.73 percent.
May 30 2007 Stamp duty tripled to 0.3 percent. Shanghai Composite Index slides 6.5 percent.
April 23 2008 Tax at 0.1 percent to boost the equities market. The Shanghai Composite index surges 9.29 percent the next day.
September 18 2008 Stamp duty scrapped except for a 0.1-percent tax on selling shares.
Tags: china stock, Shanghai-Stock-Exchange, Shenzhen-Stock-Exchange