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Monday, November 08, 1999, updated at 09:40(GMT+8)
Business Savings Deposit Interest Tax Plays Positive Role

China's tax levy policy on individuals' savings deposit interest gets positive response, experts said.

The tax policy is one of a series of policies adopted by the government to stimulate consumption and promote investment in China.

A gradual heating of the bond market in the country reveals that the levying of deposit interest taxes is already having an effect on the financial sector.

Another promising field of investment is the stock market, though it involves more risks, the experts noted.

Many market investors revealed plans to put more money in their stock capital accounts after the taxation.

Statistics indicate that accounts opened on the stock exchange during the past two weeks have increased.

The taxation may stimulate the consumer goods market, according to the China Daily Business Weekly.

Market experts said that prices of consumer goods have reached a low point, especially durable commodities and they expected people to draw more money from their savings to consume goods and warned of possible price increases in the near future.

Other potential investment fields may include foreign currency, real estate and automobiles.

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