Shares rebound on news report

The local stock market rebounded yesterday after the official Shanghai Securities News reported that a capital gains tax won't be levied on share transactions, citing unidentified officials from the Ministry of Finance and the State Administration of Taxation. The benchmark Shanghai Composite Index, which covers both yuan-denominated A shares and hard-currency B shares, rose 3.94 percent to 2,881.07. Trading value declined to 95.42 billion yuan (US$12.23 billion), from the record 131.6 billion yuan in the previous session. "Dispelling earlier market speculation that a capital gains tax will be imposed on stock transactions helped the market regain some confidence," said Cheng Li, an analyst with China Galaxy Securities Co. "The market will likely continue its correction between 2,600 and 3,000 points in the coming two or three months before it accumulates enough strength to go above the 3,000-point mark again." Trackback(0) TrackBack URI for this entry Comments (0) Subscribe to this comment's feed Show/Hide comments Write comment Show/Hide comment form Name Email Website Title Comment Write the displayed characters Add Comment Copyright 2007. All Rights Reserved.

 

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