Chinese shares rocket nearly 10 pct on stamp duty cut

0 Comments | AFP, April, 2008

SHANGHAI (AFP) — Chinese share prices surged Thursday to close up 9.29 percent, the biggest one-day rise in more than six years, after the government slashed stamp duty on stock market transactions, dealers said.

Many major stocks soared by the 10 percent daily limit with investors taking the stamp duty cut as a clear signal that the government wanted to shore up the market following its near 50 percent slide since its peak last October.

Thursday's rise represents the biggest single-day gain since October 23, 2001, according to dealers.

The benchmark Shanghai Composite Index, which covers A and B shares, closed up 304.70 points at 3,583.03 on turnover of 189.6 billion yuan (27.1 billion dollars).

The decision to cut stamp duty to 0.1 percent from 0.3...