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China Pocketed USD26.4 Billion From Stock Trading Tax After 49% Jump in Jan.-Nov.
Liao Shumin
DATE:  Dec 17 2020
/ SOURCE:  Yicai
China Pocketed USD26.4 Billion From Stock Trading Tax After 49% Jump in Jan.-Nov. China Pocketed USD26.4 Billion From Stock Trading Tax After 49% Jump in Jan.-Nov.

(Yicai Global) Dec. 17 -- China’s income from stamp duty on securities transactions jumped 49 percent in the first 11 months of this year, reflecting busy trading activity on the mainland’s stock markets.

Revenue from the tax levied on buying and selling shares stood at CNY172.8 billion (USD26.4 billion) in the January to November period, according to finance ministry data released today. China introduced the tariff in 2008.

At over CNY197 trillion (USD30.16 trillion), 11-month stock trading was up 1.55 times from a year earlier, according to data from Shanghai Wind Information.

China’s capital market reforms have sparked market vitality, a mutual fund manager told Time Weekly newspaper. The country’s economy has also recovered strongly from the coronavirus pandemic, while funds from overseas institutional investors have flooded in, boosting confidence among Chinese investors, the person added.

There were 14.87 million new stock investors in the Chinese mainland as of the end of October, more than the 13.24 million logged in the entire of 2019, according to data from China Securities Depository and Clearing. 

As many as 1,399 new funds were established this year, with CNY3.01 trillion worth of assets, more than the CNY2.99 trillion for 2017, 2018 and 2019 combined, the Wind data showed. 

Overall, equity funds has outperformed benchmark indexes this year, with average year-to-date returns of more than 45 percent from investment in common stock funds and funds that focus on stock investment. 

The Shanghai Composite Index has gained 11.6 percent so far this year, while the Shenzhen Component Index has climbed 33 percent. Shenzhen’s Nasdaq-style ChiNext board is up 55 percent.

Editor: Tom Litting

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Keywords:   Mutual Fund,Stamp Duty