Stocks rise on reports of tax measures

Source: Xinhua | 2019-03-06

The Shanghai stock index gained 0.88 percent yesterday after a government report said China will take various measures, including tax reduction, to stimulate the economy.

The benchmark Shanghai Composite Index rose 0.88 percent to close at 3054.25.

On Monday, the index crossed 3,000 points to hit a nine-month high.

The smaller Shenzhen Component Index also shot up 2.25 percent to 9,595.74, and the GEM, or Growth Enterprise Market, surged 3.51 percent to close at 1,676.57. The total turnover on the Shanghai and Shenzhen bourses was about 900 billion yuan (US$134 billion), compared with over 1 trillion yuan the previous trading day.

China plans to reduce tax by up to 2 trillion yuan, including a reduction of the value-added tax rate to 13 from 16 percent, a government report said.

More than 200 shares touched the 10 percent cap, fueling capital activity and a warm market mood, analysts said. Home appliances, 5G, tech innovation and shares with smaller market value led the surge.