Tobin Transaction Tax On Currency Speculation Likely Ahead In China; Could Crush Hedge Funds

Reports Chinese authorities are drafting rules on a Tobin transaction tax to curb currency speculation have led to further currency price drops in the renminbi and may be impacting U.S. markets, analysts say. Many hedge funds have been speculating on the Chinese currency moving lower, with China making rather public moves to derail such behavior. The Tobin tax would be among the more subtle tactics the communist nation has used to influence markets. The move comes as the wider issue of taxing financial transactions comes more into focus, a topic of discussion in the highly charged U.S. presidential campaign.