China takes measures to lift equity sentiment – Danske Bank

Analyst at Danske Bank offers a brief overview of new measures rolled out by China on Sunday, to draw investors back into its battered stock markets by halving the stamp duty on stock trading.

Key Quotes:

“China yesterday reduced the stamp duty on stock trading, lowered the margin ratio for margin trading and curbed share sales in an effort to lift market sentiment. The measures had been flagged recently but the scale was wider than expected and Chinese equities have seen a lift of more than 2% in overnight trading. Whether the gains will be sustained will depend on what other policy measures China takes in the near future to lift the economy and reduce financial risks.”

“The CNY has stabilised over the last week with Chinese authorities stepping up their efforts to counter currency weakness.”