The Ministry of Finance yesterday said it will cut the stamp duty charged for sales and purchases of stock to 0.1% of transaction value, from 0.3%. Just last year, the stamp duty had been raised to 0.3% from 0.1%, to prevent excess speculation in shares.
The China Insurance Regulatory Commission said it hopes to receive permission from the State Council to let domestic insurers move more of their investment portfolios into property and infrastructure projects. Insurers have already been allowed to make selective investments in the infrastructure sector from early 2006.
Following on our positive review of the new Beijing airport’s Terminal 3, the Red Cat Journal this week takes a look at the stock, Beijing Capital International Airport Co. Limited (0694.HK). It has fallen from a high of HK$18 last year to around HK$6.20 per share now.
The People’s Bank of China yesterday announced that it would raise the required reserve ratio for commercial banks in China to 16%, up another half a percent. This is the latest increase in a series of increases that has seen the ratio double from 8% in mid-2006. So far, China’s implementation of a “tight” monetary policy has not been focused on interest rate hikes.
The South China Morning Post reports that the Summer Palace, a favorite relaxation spot of the Qing Dynasty (1644-1912) emperors, is to be the location for a new six-star resort. Aman Resorts, famous for its exclusivity and impeccable service, is set to convert several traditional buildings in the grounds of the Summer Palace into one of its luxury hotels.
A representative of China’s State Administration of Foreign Exchange (SAFE) indicated yesterday, at a forum, that SAFE would loosen rules governing the Qualified Foreign Institutional Investor (QFII) program allowing foreign institutions to buy domestic A-shares.
The South China Morning Post reports that China has cut medium-term and long-term debt quotas used to fund real estate and energy intensive products for foreign banks operating in China. With regards to short-term lending, quotas were also cut for trade financing and working capital. The new quotas are valid until March 31 of 2009.
The China Banking Regulatory Commission (CBRC) announced yesterday that it had reached an agreement with the U.S. Securities and Exchange Commission to expand its Qualified Domestic Institutional Investor (QDII) program to cover the U.S. The program allows mainland Chinese banks to create investment products for its customers that can invest in U.S. shares.