 The Chinese government has curbed some popular enthusiasm for shares |
Chinese shares have rebounded after a media blitz by the Beijing government calmed fears of another market tax. The Shanghai Composite Index closed 3% up at 3,890.8 points after official news sources refuted a rumoured plan for a capital gains tax on stocks.
The number of new share accounts being opened in China's frenetic stock market fell sharply last week and Beijing is concerned to prevent further cooling.
That fall came after the tax on share purchases was increased to 0.3%.
State intervention
The government has been keen to damp down the enthusiasm of private investors who have been transferring personal savings into share accounts at an alarming rate.
But in the last few days, a succession of stories in the state-owned media indicated that Beijing does not wish to see another sharp drop in the market.
In particular, regulatory authorities were quoted in a Shanghai newspaper as saying that rumours that the government planned to introduce a capital gains tax were "baseless."
The shares rally is being attributed to institutional investors returning to the market to buy benchmark stocks.
One-Minute World News 
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