Tax breaks to spur market

In an effort to lift China's sagging stock market, Beijing announced that only 50% of the dividends received by retail investors would be taxable, and compensation for holders of tradable shares in connection with the state's non-tradable shares program would be exempt from the stamp tax and corporate and personal income tax, state media reported, citing the Ministry of Finance and the State Administration of Taxation. China's state shares sale has been a drag on the market since the program was announced in May.