China International Political Economy

The China government has cut the stamp duty on China stock market transactions from 0.3 percent to 0.1 percent according to AFP.

To understand the impact of the stamp duty reduction, the China government and the State Administration of Taxation received 220.5 billion yuan in revenue in 2007 which was up 10 times that of 2006.

The move by the China government is aimed to boost the China stock market as it currently is 46 percent off its high.