CX Daily: Why China’s Efforts to Juice Stocks Typically Don’t Last

00:00

00:00/00:00

Listen to this article 1x

The measures were aimed at juicing the stock market, which has languished as an economic slowdown eroded confidence in China’s post-pandemic recovery. Photo: VCG

Stocks /

Caixin Explains: Why China’s efforts to juice stocks typically don’t last

China’s new measures to energize its stock market most likely won’t have long-lasting effects without additional policy help as they are mostly designed to lift sentiment, analysts and market participants said.

The Ministry of Finance, the State Taxation Administration and the China Securities Regulatory Commission unveiled the package of policies Sunday. They included halving stamp duty on stock trades to 0.05%, slowing the pace of IPOs and lowering the minimum margin ratio for stock purchases through margin financing.