BUYERS and sellers of stocks in China will be required to pay 0.3 per cent tax on every transaction under a proposal put forward by the Ministry of Finance. Bonds will be subject to a 0.1 per cent transaction tax, ministry officials told Xinhua (the New China News Agency). However, government bonds and central bank short-term instruments will be exempt from the transaction tax to boost their popularity and facilitate the central bank's monetary control. Tax revenue from securities transactions will be shared equally between central and local governments as part of the reform introducing a tax-sharing mechanism. The securities transaction tax will not be implemented at the same time as turnover tax and personal income tax, which are to be effective from January 1. Officials said it would be introduced at the ''appropriate time''. China allowed stock exchanges to re-open three years ago. By the end of this year, it is expected that a total of 180 stocks will be quoted on the Shanghai and Shenzhen exchanges. By then, Xinhua says total trading volume in the two exchanges could amount to 100 billion yuan (about HK$134 billion at the official rate).