The CSI index has risen by almost 70% this year. Nevertheless this has not stemmed the tide of ordinary Chinese people buying shares. The imposed stamp duty increase will net the Chinese Government around $40Billion at current levels. Stock market regulations have meant companies must suspend trading if the share value fluctuates by a total of 20% in any 3 consecutive days. This policy has recently been suspended as unworkable.
Analysts in the UK and Asia comment that investors in Hong Kong, Australia, where the markets increased on Monday expect the China bubble to burst and acknowledge that there will be a negative impact on the value of all China related businesses.