Friday, 01 June 2007

China Stamp Tax Increase Fails to Rein in Surge in New Brokerage Accounts

(Bloomberg) -- Almost half a million Chinese opened
brokerage accounts the day after the government tripled the tax on
equity transactions to cool speculation in the world's fastest-
growing stock market.

``New investors don't seem to care about the increase in the
stamp duty, as they think that's a minor increase,'' said Yan Ji,
an investment manager at HSBC Jintrust Fund Management Co. in
Shanghai, which manages $517 million. ``If the market continues the
fast pace of the rally like before, that may trigger even tougher
crackdown measures.''


Read more at Bloomberg Stocks News

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