The China Daily reports:

China's legislature on Friday authorized the State Council to suspend or cut the 20-percent tax on interest earned on personal savings according to economic and social situations.

The decision was made at the 28th session of the Standing Committee of the National People's Congress.

Experts say the move is aimed at making bank savings more attractive and reducing the amount of money flowing into the stock market.

Chinese shares took another tumble on Friday as investors panicked at the government measures to rein in excess liquidity and cool down the stock markets.

To read more:

http://www.chinadaily.com.cn/china/2007-06/29/content_906732.htm