China to exempt share dividends
05/09/2008
It was rumoured in the Chinese media that the central Chinese government is considering dropping tax on stock dividends in a bid to tempt investors back to China's flagging markets.
Citing officials within the China Securities Regulatory Commission, the Shanghai Securities Journal reported that a possible dividend tax exemption is currently under consideration in Beijing, although it is unclear if the measure would be a temporary market-boosting initiative, or a permanent move.
History suggests however, that if the Chinese government decides to go ahead with the move, it will be transient in nature as it has used such temporary tactics in the past to help bolster the stock market.
