China has halved the stamp duty on stock trading effective Monday as part of its strategy to revive the struggling market. The finance ministry announced that it is reducing the 0.1% duty on stock trades in order to invigorate the capital market and boost investor confidence. This comes after a key share index fell to nine-month lows, prompting authorities to plan the cut. However, experts suggest that while this policy could give a short-term boost to the market, it is unlikely to have much impact in the long run.

The reduction in stamp duty is seen as a measure to stimulate stock trading and encourage investment. By lowering the cost of trading, the government hopes to attract more investors and increase market activity. However, some experts are skeptical about the effectiveness of this move. Xie Chen, a fund manager at Shanghai Jianwen Investment Management Co, believes that while the policy may provide a temporary boost to the market, it will not have a significant impact in the long run. He suggests that the rebound in stock prices could last for just two to three days, or even shorter.

China’s stock market has been struggling in recent months, with the key share index hitting nine-month lows. The government has been implementing various measures to revive the market, including liquidity injections and easing regulations. However, these efforts have not produced the desired results. The ongoing trade tensions with the United States and concerns about China’s economic growth have also contributed to the market downturn.

Experts argue that the reduction in stamp duty is not enough to address the fundamental issues facing China’s stock market. They believe that structural reforms and stronger economic fundamentals are needed to restore investor confidence and attract long-term investment. Without addressing these underlying issues, any temporary boost provided by the stamp duty cut is unlikely to have a lasting effect.

In conclusion, China’s decision to halve the stamp duty on stock trading is aimed at reviving the struggling market. While the policy may provide a short-term boost, experts believe that it is unlikely to have a significant impact in the long run. Structural reforms and stronger economic fundamentals are needed to address the underlying issues facing China’s stock market and restore investor confidence.