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Aninvestor is watching market imformation in shanghai ontuesday. The benchmark shanghai composite idex closed at 1,895.84points, down 33.21points, or 1.72 percent. the Shenzhencomponent Index closed at 6,563.07 points , down 116.99points, or 1.75 percent.
SHANGHAISep. 18 ( agencies)--China's finance ministry has eliminated a taxon share purchases,effective friday, in a move toboostthe equities market after domestic stocks fell forthirdconsecutive day since tuesday.
China central Television said late thursday that 0.1 percentstamptax on buying share would be abolished, although anequivalenttax on share sales would remain.
Meanwhile, a government investment arm plans to buy share intheremajor chinese banks in order to boost share prices. Whichhasplunged following last wenkend's announcement that investmentbank lehman brothers has filed for bankrupcy, theXinhua newsagency reported.
It said huahui investment corp, which holds the majority sharesinmany staterun companies and financial institutions, beganbuyingshares in industrial & comercial bank of china, bank ofchinaand china construction bank on thursday.
The moves follow a volatile day that saw country'sbenchmark in shanghai composite index plung 7 percent beforerecoveringsome losses to close 1.7 percent lower, at 1,895.84.
already weakening bank shares fell further early thursdayafterleaders disclosed holdings in lehman brothers bonds totalingaboutUS$300 million, but they rebounded later in the dayonbargin hunting.
Bank of china gained 2.7 to 3.05 yuan and ICBC rose 0.6 percentto3.44 yuan, while china construction bank fell 0.5 percent to3.81yuan.
" I think the market is not stable at all" an yun, a strategistatshenyin wanguo securities in shanghai, said oftherollercoaster-like session.
regulartors have used ajustments in the stamp tax in the pasttohelp spur and cool demand to shares.
On April 24, the last time the stamp tax was cut,theshanghai composite index was soared 9.3 percent---itsbiggestone-day percentage gain ever.
The previous tax cut , 0.1 percent to 0.3 percent, reversed ataxincrease imposed in may, 2007, When regulartors were tryingtorestain surging share prices.