Is China gearing up to tax commodity producers?

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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 The NASDAQ OMX Group, Inc.



This article appears in: Investing , International , Stocks

Referenced Stocks: ACH , CEO , PTR , SNP , YZC

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