The stamp duty paid on listed stock trades by both buyers and sellers will be increased to 0.13 per cent from the current 0.1 per cent on Aug. 1.
The hike could create some short-term negative impact on stock trading, Yang Lingxiu, chief strategist at Citic Securities, said. But, he added, economic recovery and listings of new-economy companies and some U.S.-listed Chinese firms’ secondary listing would continue to attract fund inflows into Hong Kong.
At the midday break, the Shanghai Composite index was up 1.07 per cent at 3,602.28, while China’s blue-chip CSI300 index was up 1.43 per cent to 5,512.23.
Chinese H-shares listed in Hong Kong rose 2.63 per cent to 11,812.05, while the Hang Seng Index gained 2.15 per cent to 30,356.40.
The smaller Shenzhen index added 0.4 per cent, the start-up board ChiNext Composite index was up 0.56 per cent and Shanghai’s tech-focused STAR50 index was down 0.37 per cent.
Property shares were among the top gainers after some research notes by local brokerages said the valuation of the real estate sector was at a historically low level. A gauge that tracks the sector jumped 9.22 per cent.
Aiding sentiment, Wall Street gained overnight after U.S. Federal Reserve Chair Jerome Powell reaffirmed interest rates would stay low for a long time.
Around the region, MSCI’s Asia ex-Japan stock index was weaker by 1.71 per cent, while Japan’s Nikkei index was up 1.62 per cent.
So far this year, the Shanghai stock index is up 3.7 per cent and the CSI300 has risen 5.8 per cent, while China’s H-share index listed in Hong Kong is up 10 per cent. Shanghai stocks have risen 3.42 per cent this month.
