On May 30, 2007, the A-share Shanghai Composite Index plunged 28 1.8 1, a decrease of 6.5%; The Shenzhen Component Index fell 829.45, down 6. 16. Among them, the largest decline of the Shanghai Composite Index reached 2 1.49% in just five trading days. The main reason for the rapid decline of the stock market is that the Ministry of Finance raised the stamp duty rate of stock transaction fees from 1‰ to 3‰ late at night on May 29, 2007, which directly became the last straw to crush the camel!
In May 2007, the A-share market was rumored to raise stamp duty, which was clarified by the Ministry of Finance. Then, in the early morning of the 30th, the Ministry of Finance suddenly announced that the stamp duty would be raised from 1/1000 to 3/1000, which caused the stock market to surge from 4,300 to 3,400 in just one week. Many stocks have been trading for three consecutive days, and investors have suffered heavy losses because they were caught off guard. Historically, it was called the "530" incident, and some investors nicknamed it the Ministry of Finance.