Is It Feasible to Implement Tobin Tax in China?

Abstract

The “Tobin tax” is a price-based tool for international supervision cross-border capital flows. In the context of the Belt and Road Initiative, the positive role of the Guangdong-Hong Kong-Macao Greater Bay Area continues to be highlighted, while the risk of cross-border capital flows in the Guangdong-Hong Kong-Macao Greater Bay Area is also increasing, which requires effective market-oriented regulatory tools. This paper first outlines the design conditions for implementing “Tobin tax” and then analyzes the existing cross-border capital flow mode in China. On this basis, according to the specific national conditions of China, this paper discusses the feasibility of implementing the "Tobin tax" in China and proposes a concrete implementation plan of implementing the "Tobin tax" in the Guangdong-Hong Kong-Macao Greater Bay Area.