Shanghai Index Soars 9.3 Percent on Tax Cut

Shanghai stock index slumped severely nowadays, but it surged 9.3 percent Thursday because of a cutting tax policy. From AP via

China’s most-watched stock index surged 9.3 percent Thursday – its biggest percentage gain ever – after the government cut a tax on stock transactions in a move widely seen as an effort to boost slumping markets.

The rebound came as many global markets are recovering modestly after being battered since the start of the year by worries over the U.S. credit crisis and slower global growth.

The benchmark Shanghai Composite Index surged as much as 9.6 percent in early trading, then fell back some before closing up 304.69 points, or 9.3 percent, at 3,583.02. The Shenzhen Composite Index of China’s smaller bourse shot up 8.7 percent.

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