China Merchants Securities Lin Xipeng said that looking at the world, many countries and regions in the world have imposed securities transaction tax, but the major securities trading markets tend to abolish this tax eventually. After the “Stamp Duty Law of the People’s Republic of China” is officially promulgated, the stamp tax on securities transactions will be an official tax, and its adjustment must be decided by the State Council and reported to the Standing Committee of the National People’s Congress for the record.my country’s stamp duty rate is currently the lowest in history, and it is also the lowest compared to other countries that levy stamp duty.
Gao Ming of Galaxy Securities said that since 2000, China’s stamp duty on securities transactions has been lowered four times, and the trading volume of the Shanghai Composite Index in these four times increased by 71%, 98%, 114% and 139% respectively in the week. The main reason is that the reduction of stamp duty will help reduce the cost of investors, which will help increase the scale of market transactions. From an international comparison, the United States, Japan, Germany, and the United Kingdom have all canceled stamp duty successively.Therefore, reducing or even canceling the stamp duty on securities transactions will also help A-shares participate in global competition.
Soochow Securities Chen Gang said that the reduction of stamp duty can show the attitude of the management to a certain extent and stimulate market information, but it can only stop the stock market from falling in the short term and bring about a daily or weekly rebound, and cannot fundamentally change the A stock trend. The sustainability of the market still depends on the direction of the subsequent industrial cycle, the strength of economic recovery, and whether other policies such as capital market reform can exert their strength. In addition, after the implementation of the Stamp Duty Law, the “use cost” of this market regulation tool has increased, and it may be difficult to become a timely boosting measure.
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A picture to understand the changes in stamp duty on securities transactions in the past 10 years
Recently, there have been intense discussions in the market on adjusting the stamp duty on securities transactions. Through combing, the Financial Associated Press found that in the past 10 years, there have been three years in which the stamp duty on securities transactions has exceeded 200 billion, namely 275.9 billion in 2022, 247.8 billion in 2021, and 255.3 billion in 2015. There are also 3 years with less than 100 billion. The year is 47 billion in 2013, 66.7 billion in 2014, and 97.7 billion in 2018.
Judging from the growth of stamp duty on securities transactions, there have been 7 years of positive year-on-year growth in the past 10 years, of which the year-on-year growth rate was the highest in 2015, reaching 2.8 times. There are 3 years of year-on-year decline in data, among which 2016 has the largest decline, reaching 51%. It is worth noting that in the first half of this year, the stamp tax on securities transactions stood at the 100 billion mark, but the year-on-year decline reached 30%.
How has the market reacted to the adjustment of A-share stamp duty over the years?The last adjustment to the daily limit of all A shares
After the Politburo proposed to activate the capital market, calls for activating the market by reducing or canceling the stamp duty gradually increased. At the beginning of August, the three major official media including Securities Times, Economic Daily, and CNR jointly spoke out to activate the capital market and boost investors. Confidence, call for lower stamp duty. Last night, the Beijing Business Daily published a commentary saying that A-shares could also consider abolishing stamp duty, which aroused high concern.
Stamp duty was levied in Shenzhen in 1990. At that time, traders who sold stocks paid 6‰ of the transaction amount. In November of the same year, the Shenzhen market also levied a stamp duty of 6‰ for buyers.
The Financial Associated Press has sorted out the performance of the Shanghai Composite Index after adjusting the stamp duty in the history of A shares:
Previous adjustments and impacts of A-share stamp duty:
1) On October 10, 1991, the stamp duty was lowered from 6‰ to 3‰, which was the first adjustment of stamp duty in the history of my country’s securities market. After the adjustment, the big bull market started. Half a year later, the Shanghai Composite Index soared from 180 points to 1429 points, an increase of nearly 7 times.
2) On May 12, 1997, the stamp duty was raised from 3‰ to 5‰. The peak of the big bull market was formed that day, and the stock index fell 500 points after that.
3) On June 12, 1998, the stamp duty was lowered from 5‰ to 4‰. On the first trading day after the adjustment, the stock index rose slightly by 2.65%.
4) On November 16, 2001, the stamp duty was lowered from 4‰ to 2‰. After the adjustment, the stock index had a market price of more than 100 points.
5) On January 23, 2005, the stamp duty was lowered again, from 2‰ to 1‰. After adjustment, on January 24, the stock index closed up 1.73%. Subsequently, A-shares attracted a magnificent three-year bull market. The Shanghai Composite Index reached a historical high of 6124 points in October 2007, and has not yet broken through.
6) On May 30, 2007, the stamp duty was raised from 1‰ to 3‰, which was the only increase in 10 years since 1997. It is worth noting that the news of the increase in stamp duty was released late at night on May 29, which also caused the market to plummet by 6.5% on May 30. It can be said that the 4334 points of the Shanghai Stock Exchange at that time were actually the policy peak, and the market already believed that the stock market was overheated! But the market at that time was very crazy, and the bull market did not end until 6124 points in mid-October.
7) On April 24, 2008, the stamp duty was adjusted from 3‰ to 1‰. After the adjustment, the stock index closed up 9.29%, and the market was close to the daily limit. It can be said that 3000 points was the first official support and the first policy bottom at that time.
8) On September 19, 2008, the Shanghai Stock Exchange fell to around 1800 points, the second policy bottom appeared, and the government supported the market for the second time. The stamp duty on securities transactions was changed from bilateral collection to unilateral collection, and the tax rate remained at 1‰. On that day, the Shanghai Stock Exchange Index recorded the third largest increase in history, rising 9.45% at the close, and all stocks in the two markets rose by their daily limits. About one month later, the lowest point of the Shanghai Stock Exchange appeared at 1664 points, and the bottom of the market appeared. The broader market stopped falling and rebounded. With the introduction of the 4 trillion stimulus policy, by August 2009, the Shanghai Stock Exchange had risen above 3,400 points, and the market had doubled.
(Article source: Shanghai Securities News)
Article source: Shanghai Securities News
Original title: Many institutions are hotly discussing the issue of stamp duty adjustment
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2023-08-15 23:33:57
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