Multiple measures are introduced to boost market confidence with more-than-expected strength, range, and speed

The Ministry of Finance and the State Taxation Administration recently announced that the stamp duty on securities transactions will be halved. On the same day, the China Securities Regulatory Commission also launched policy measures such as phased IPO slowdown, shareholding reduction behavior standardization, and financing margin ratio reduction. The strength, extent, and speed of the relative policies exceeded expectations. Experts from the interviewed institutions believe that the reduction of stamp duty will have an immediate impact on the capital market and investor confidence. The dynamic balance of the primary and secondary markets can effectively reduce the outflow of market funds, and the relaxation of the financing margin ratio can promote the activation of leveraged funds. The depth and continuity of follow-up policies are worth looking forward to.