Industry Experts : Stamp Duty Not to Adjust on Bilateral Charged Due to Launchin

It is widely spreaded that stamp duty on securities transaction is to be adjusted to bilateral charged in the mid-April due to the upcoming index futures.

For this statement, the insiders pointed that there was no necessary link between the adjustment on stamp duty policy and the upcoming stock index future, moreover the stamp duty policy should maintain stable under the current market situation.

He Qiang, professor for Finance School of Central Finance and Economics University, said that the aforementioned hearsay had existed since the beginning of 2010 but there is no need to adjust stamp duty policy currently. He further pointed out that the amount of stamp duty mainly depends on the market activity, while the scale of stock index future in the early stages is relatively small, thus it is not the proper time for China to adopt bilateral charged or raising duty rate under the current market trends and situation.

As for the stamp duty of this year, Report on Central and Local Budget Implementation for 2009 and Draft Resolution on Central and Local Budget for 2010, published by Ministry of Finance, showed that the revenue of stamp duty for stock index future is expected to complete by 51.6 billion yuan, up 2.096 billion yuan from the previous year with a growth rate of 4.2% year-on-year.

According to this, some market participants said that, the increasing range for stamp duty of this year is quite small, indicating that the bilateral charged policy or raising duty rate is not listed in the finance plan of this year. But some analysts also held the view that the whole turnover on Shanghai and Shenzhen Stock Exchange reached a record high last year, if the total stamp duty revenue plan of this year exceed that of last year, under the condition that the turnover is difficult to reach a further increase, the duty rate is probably to rise. But it will not happen recently as unilateral bull market is not existed.

Since the adjustment on stamp duty will bring great effect on market, the insiders believed that from the perspective of holding stability, it is not suitable to raise stamp duty rate temporarily because of the extremely complex internal and external situation and the unstable capital market. At present, Maintaining the stamp duty policy stable is good for strengthening investors' confidence.