Chinese stocks slumped by more than 6% this morning after the country's government tripled a share-trading tax in a bid to cool its red-hot market.
China's Ministry of Finance raised stamp duty on share transactions to 0.3% from 0.1% in what was seen as the strongest attempt yet to curb speculation in a market that had risen more than 60% so far this year.
The news affected other Asian markets, with Tokyo's Nikkei closing down 0.5%. European markets also fell after the move.
China's benchmark Shanghai Composite Index ended down 6.5%, having fallen as much as 7.4% earlier. Shares in stockbrokers were hardest hit on fears the tax rise would shrink market turnover.
