China to cut dividend taxes for long-term shareholders

HONG KONG/BEIJING (Reuters) - China said on Monday it would remove personal income tax on dividends for shareholders who hold stocks for more than a year, in a move aimed at encouraging longer-term investment in equities as opposed to short-term speculation.
The government also said it would halve the tax on dividends for those holding shares between a month and a year and that the changes would come into effect on Tuesday.
Full tax payment will be required for shareholders who hold shares for less than a month, the finance ministry said in a statement on its website.
The measures are the latest in a volley of policy moves Beijing hopes will halt a slide in Chinese equities that has rattled global investors and raised fresh doubts about the strength of the world's second-biggest economy.

Hours earlier, the Shanghai and Shenzhen Stock Exchanges and the China Financial Futures Exchange proposed introducing a "circuit breaker" on one of the country's benchmark stock indexes to stabilize the market, the Shanghai exchange said in a statement on its website.
The exchange is proposing that a 5 percent rise or fall in the CSI300 index <.CSI300> from the previous day's close would trigger a 30-minute suspension of all the country's equity indexes if the move occurs before 2:30 p.m.
After that time, a 5 percent move would prompt a suspension until the market close.
Moves of 7 percent from the previous close would trigger a trade suspension for the rest of the day.
The exchanges are seeking comment from market participants on the proposals before Sept. 21

There is no guarantee that Beijing will adopt the proposals, but, if enacted, they could prove a disincentive to investors who want to buy stocks, by restricting the market's potential to rise as well as to fall.

MIXED REACTION
"It prevents a degree of very unhealthy volatility from impacting the market and at the same time allows investors to trade their conviction but not to the point where it becomes dysfunctional and counterproductive," said Peter Kenny, chief market strategist at Clearpool Group in New York.
"This could actually help global markets quite a bit just in terms of investor psychology."
But the reaction among others was skeptical.
"What's the point? It merely delays the pace of the market fall," said Liu Ligang, China economist at ANZ in Hong Kong.
"If you resume market trading again (after the 30 minute suspension), the market will continue to fall. Why should they (even) have an equity market? This policy-making style is pushing China backwards to a planned economy."

Other market participants expressed doubts that volatility could be tamped down, as the myriad of measures taken by policymakers to reduce the wild swings in the stock market have been ineffective thus far.
"They tried to encourage long-term investment and also to curb volatility, but I don’t think that can be totally under control at this point," said Tracy Chen, a portfolio manager at Legg Mason unit Brandywine Global in Philadelphia.
"The market’s confidence in Chinese policymakers is a little bit shaky right now."
The CSI300 index comprises the largest listed companies in Shanghai and Shenzhen.
(Reporting by Meg Shen and Twinnie Siu in Hong Kong and Dominique Patton, Meng Meng and Nicholas Heath in Beijing, Chuck Mikolajczak in New York; Editing by Mike Collett-White and Cynthia Osterman)

大概是减税以增大他们的投资量？

减少股息税而已，但是你锅股市分红要么少得可怜，要么干脆没有（美名其曰：分红再投资用于公司发展或股票增值），而且没有做空，故投资股市唯一能够获利的渠道就是做多股票现货后再高位卖出获取差价，这部分获得的收入法律上算个人收入，还是在纳税范围之内。

现在可以说什么政策工具都失效了，只剩下央行大规模直接购债这一招，但这样一样必然导致贬值（或者反过来说先贬值然后再购债，效果其实一样），在犹豫中患得患失拖拉得越久，万一美联储这个月加息、资金回流海外，那最后这一个工具也没用了。