The State Council of China said on beginning tomorrow, the securities trading tax will decline to 0.1 percent from current 0.3 percent.
When China's A-shares or B shares are transferred in a deal, the parties in the transaction should pay the securities trading stamp duty, beginning April 24, the agency said.
At present only Australia and China impose the securities trading stamp duty on both buyers and sellers, and China imposes the world's highest stamp duty on securities transactions. Since the stamp duty policy was launched on November 23, 1990, China has repeatedly adjusted the rate for seven times.
Analysts said that the abolition of stamp duty can help to convey to investors clear market signals and stimulate the turnover of financial products trading, as well as to inhibit the disadvantages of tax in heavy trading links.