BEIJING  -- Chinese has decided not to levy tax on corporate earnings from securities trading at the moment, seen as a move to boost the current gloomy stock market.

Income from stock and bonds trading by securities investment funds will be free from enterprise income tax for the time being, said a statement released by the Ministry of Finance and the Administration of Taxation on Wednesday.

Meanwhile, institutional investors and funds managers do not need to pay such tax for income from funds management, said the statement.

"This policy will help promote the development of the funds sector and fund subscription among investors," said He Qiang, professor with the Central University of Finance and Economics. "It's good news for the stock market."