China stocks plummet after stamp tax hike

时间：2007-05-30 06:56:54

（单词翻译:单击）

May 30 - Chinese stocks plummet1 five percent at opening on Wednesday after an announcement of a hike in stamp tax on stock trading.

 

The benchmark Shanghai Composite Index opened lower at 4087.41 points, 247.51 points, or 5.78 percent down from Tuesday's close.

 

The rise in the stamp tax to 0.3 percent from 0.1 percent marked the latest move to cool down the country's runaway2 equity3 market.

 

A Ministry4 of Financial official said the move is intended to help promote the healthy development of the securities markets.

 

The fiscal5 measure came after a series of monetary6 tools by the central bank failed to produce marked results in cooling down the market. The Shanghai Composite Index, the most widely watched indicator7 of the mainland's stock market has soared more than 60 percent so far this year on top of a 130 percent rally in 2006.

 

China's central bank has raised interest rates twice and bank reserve requirement four times this year. However, the stock market ignore the signal and rose on the first trading day after each tightening8.

 

The booming is partly driven by the flood of new investors9. The number of stock accounts, including A-, B-shares and closed-end funds in the Shanghai and Shenzhen stock exchanges reached 100.27 million by Monday, according to statistics from the China Securities Depository and Clearing Corporation.

 

The stock market frenzy10 has aroused mounting bubble concerns, from both home and abroad. The latest warning came from former chairman of US Federal Reserve Alan Greenspan who warned last week China's stock market was clearly unsustainable and faced a dramatic contraction11.

 

Greenspan's remarks followed warnings from Asia's richest man, Li Ka-shing who said China's stock valuations "must be a bubble" and prices are likely to decline. Central Bank governor Zhou Xiaochuan also expressed concerns earlier this month.

 

Some analysts12 have been advocating the adoption13 of fiscal measures, including the hike of the stamp tax which is collected based on transaction turnover14 and is levied15 on both sellers and buyers.

 

In the 16-year-plus history of China's stock market, a stamp tax hike usually led to a slump16.

 

China started to collect a stamp tax on the Shenzhen Stock Exchange in July, 1990, but only on sellers at 0.6 percent. Four months later, the buyers were also subject to the tax.

 

The tax triggered a downturn in the Shenzhen market, forcing authorities to cut it in half to 0.3 percent in October 1991. At the same time, the Shanghai Stock Exchange also began collecting duty on both sides of trades.

 

On May 10, 1997, the tax rate was upped to 0.5 percent, partly blamed for a bear market that lasted until mid-1999. The rate was lowered to 0.4 percent in June, 1998 before being adjusted to 0.3 percent one year later and to 0.2 percent in 2001.

 

Regulator further lowered the duty in January 2005 to 0.1 percent in order to boost stock prices during a market slump lasting17 from 2001 to 2005.

 
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点击收听单词发音收听单词发音  

1 plummet s2izN     
vi.(价格、水平等)骤然下跌；n.铅坠；重压物
参考例句：
  • Mengniu and Yili have seen their shares plummet since the incident broke.自事件发生以来，蒙牛和伊利的股票大幅下跌。
  • Even if rice prices were to plummet,other brakes on poverty alleviation remain.就算大米价格下跌，其它阻止导致贫困的因素仍然存在。
2 runaway jD4y5     
n.逃走的人，逃亡，亡命者；adj.逃亡的，逃走的
参考例句：
  • The police have not found the runaway to date.警察迄今没抓到逃犯。
  • He was praised for bringing up the runaway horse.他勒住了脱缰之马受到了表扬。
3 equity ji8zp     
n.公正，公平，（无固定利息的）股票
参考例句：
  • They shared the work of the house with equity.他们公平地分担家务。
  • To capture his equity,Murphy must either sell or refinance.要获得资产净值，墨菲必须出售或者重新融资。
4 ministry kD5x2     
n.(政府的)部；牧师
参考例句：
  • They sent a deputation to the ministry to complain.他们派了一个代表团到部里投诉。
  • We probed the Air Ministry statements.我们调查了空军部的记录。
5 fiscal agbzf     
adj.财政的，会计的，国库的，国库岁入的
参考例句：
  • The increase of taxation is an important fiscal policy.增税是一项重要的财政政策。
  • The government has two basic strategies of fiscal policy available.政府有两个可行的财政政策基本战略。
6 monetary pEkxb     
adj.货币的，钱的；通货的；金融的；财政的
参考例句：
  • The monetary system of some countries used to be based on gold.过去有些国家的货币制度是金本位制的。
  • Education in the wilderness is not a matter of monetary means.荒凉地区的教育不是钱财问题。
7 indicator i8NxM     
n.指标；指示物，指示者；指示器
参考例句：
  • Gold prices are often seen as an indicator of inflation.黃金价格常常被看作是通货膨胀的指标。
  • His left-hand indicator is flashing.他左手边的转向灯正在闪亮。
8 tightening 19aa014b47fbdfbc013e5abf18b64642     
上紧，固定，紧密
参考例句：
  • Make sure the washer is firmly seated before tightening the pipe. 旋紧水管之前，检查一下洗衣机是否已牢牢地固定在底座上了。
  • It needs tightening up a little. 它还需要再收紧些。
9 investors dffc64354445b947454450e472276b99     
n.投资者，出资者( investor的名词复数 )
参考例句：
  • a con man who bilked investors out of millions of dollars 诈取投资者几百万元的骗子
  • a cash bonanza for investors 投资者的赚钱机会
10 frenzy jQbzs     
n.疯狂，狂热，极度的激动
参考例句：
  • He was able to work the young students up into a frenzy.他能激起青年学生的狂热。
  • They were singing in a frenzy of joy.他们欣喜若狂地高声歌唱。
11 contraction sn6yO     
n.缩略词，缩写式，害病
参考例句：
  • The contraction of this muscle raises the lower arm.肌肉的收缩使前臂抬起。
  • The forces of expansion are balanced by forces of contraction.扩张力和收缩力相互平衡。
12 analysts 167ff30c5034ca70abe2d60a6e760448     
分析家，化验员( analyst的名词复数 )
参考例句：
  • City analysts forecast huge profits this year. 伦敦金融分析家预测今年的利润非常丰厚。
  • I was impressed by the high calibre of the researchers and analysts. 研究人员和分析人员的高素质给我留下了深刻印象。
13 adoption UK7yu     
n.采用，采纳，通过；收养
参考例句：
  • An adoption agency had sent the boys to two different families.一个收养机构把他们送给两个不同的家庭。
  • The adoption of this policy would relieve them of a tremendous burden.采取这一政策会给他们解除一个巨大的负担。
14 turnover nfkzmg     
n.人员流动率，人事变动率；营业额，成交量
参考例句：
  • The store greatly reduced the prices to make a quick turnover.这家商店实行大减价以迅速周转资金。
  • Our turnover actually increased last year.去年我们的营业额竟然增加了。
15 levied 18fd33c3607bddee1446fc49dfab80c6     
征（兵）( levy的过去式和过去分词 )； 索取； 发动（战争）； 征税
参考例句：
  • Taxes should be levied more on the rich than on the poor. 向富人征收的税应该比穷人的多。
  • Heavy fines were levied on motoring offenders. 违规驾车者会遭到重罚。
16 slump 4E8zU     
n.暴跌，意气消沉，（土地）下沉；vi.猛然掉落，坍塌，大幅度下跌
参考例句：
  • She is in a slump in her career.她处在事业的低谷。
  • Economists are forecasting a slump.经济学家们预言将发生经济衰退。
17 lasting IpCz02     
adj.永久的，永恒的；vbl.持续，维持
参考例句：
  • The lasting war debased the value of the dollar.持久的战争使美元贬值。
  • We hope for a lasting settlement of all these troubles.我们希望这些纠纷能获得永久的解决。

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