China’s benchmark stock index plunged 6.5 per cent on Wednesday, after Beijing took its most decisive step yet in its efforts to deflate the soar-away mainland stock market by tripling the stamp duty tax on share transactions reports the Financial Times.
Tony Tassell, deputy markets editor, on the limited fallout from the sharp drop on the Shanghai and Shenzhen 300 index. The measure had an immediate impact on the Shanghai and Shenzhen stock markets. The Shanghai Composite Index dropped as much as 7.4 per cent before ending down 6.5 per cent at 4,053.01, its lowest since May 21. The Shanghai and Shenzhen 300 index, which covers both bourses, dived 6.8 per cent to 3,859.9. Trading was heavy, with the combined turnover on the two exchanges reaching a record $53bn.
Read it here: http://www.ft.com/cms/s/d3301c60-0e5c-11dc-8219-000b5df10621.html