Is China gearing up to tax commodity producers?

By Emerging Money>,

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Look at the charts on China's "big three" oil producers. These tickers are sick, sick, sick. There is talk that China is going to impose a 10% tax on commodity producers, starting with oil but possibly extending to coal, gas, copper and so on. While not confirmed, this is a hot topic for the "big three" of PTR ( quote ), CEO ( quote ) and SNP ( quote ): The fact is that China did introduce a trial resource tax last June. While all of this hinges on higher prices and levels of production that would ordinarily imply good times for producers, it would still put a ceiling on their earnings at a moment when they are already subsidizing the Chinese infrastructure build out to nowhere. This might be why commodity markets have traded choppily lately -- if not flat out in despair. Watch the oil group, and if this tax becomes a reality for them, look out YZC ( quote ) and ACH ( quote ).

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Stocks
Referenced Stocks: ACH , CEO , PTR , SNP , YZC

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