Stamp tax dropped to lift stock market

The government yesterday scrapped the stamp tax on purchase of equities and the State-owned investment agency Central Huijin announced it would buy shares of three major Chinese banks.

The moves are aimed at stabilizing the fragile stock market, reeling under the impact of the US financial crisis.

In the US and Europe, the news of central banks across the world pumping billions of dollars into the market appeared to calm investors' nerves early yesterday.