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Shanghai shares gain on VAT trial expansion
Aggregated Source: Shanghai Daily: Business

SHANGHAI stocks ended higher today after China announced measures to expand the trial of value-added tax nationwide to boost economic vitality.

The benchmark Shanghai Composite Index added 2.70 points, or 0.12 percent, to 2,324.02, the highest close since March 25. Daily turnover was 114.3 billion yuan (US$18.7 billion).

The pilot reform to replace business tax with VAT in transport and other service sectors will be expanded nationwide from August 1 and to radio, television and film industries, the Ministry of Finance said in a statement yesterday.

"Carrying out the tax reform despite of financial risks faced by local governments underlines China's commitment to stabilize economy with proactive fiscal policies and to boost market confidence for the long term," CITIC Securities said in a report today.

The brokerage estimated the expansion of VAT reform will save enterprises 120 billion yuan of tax money this year.

Media companies gained. Jiangsu Phoenix Publishing & Media Corp Ltd rose 2 percent to 9.16 yuan. China Television Media increased 2.2 percent to 14.29 yuan.

The China Securities Regulatory Commission may resume initial public offering approvals in the second half of August, the 21st Century Business Herald reported today, citing unnamed sources close to the regulator.

The timing is later than the widely expected June. The commission has suspended IPO approvals since December and ordered companies applying for IPOs on domestic bourses to double-check their financial status in a bid to eliminate frauds.

Guangzhou Automobile Group Co led the gains of carmakers, surging by the daily limit of 10 percent to 10.13 yuan. SAIC Motor Corp Ltd added 2.1 percent to 15.90 yuan.

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Copyright Shanghai Daily: Business