China to waive cap­i­tal gains tax for Shen­zhenHong Kong Con­nect

China Daily (Hong Kong) - - BUSINESS | MARKETS - By BLOOMBERG

China will waive cap­i­tal gains taxes for for­eign in­vestors trad­ing through the Shen­zhen-Hong Kong ex­change link, pro­vid­ing clar­ity ahead of the Con­nect’s start on Dec 5.

Main­land author­i­ties will also waive the cap­i­tal gains tax for do­mes­tic in­di­vid­ual in­vestors buy­ing shares listed in Hong Kong for three years, ac­cord­ing to a state­ment posted on the Min­istry of Fi­nance’s web­site. A cap­i­tal gains tax will still ap­ply to main­land in­sti­tu­tional in­vestors trad­ing Hong Kong stocks and the author­i­ties will levy a 20 per­cent tax on hold­ing Hong Kong stocks.

The de­ci­sion not to im­pose a cap­i­tal gains tax mir­rors a sim­i­lar per­cent

the amount of tax on div­i­dends earned by main­land in­di­vid­ual in­vestors from Hong Kong stocks

ex­emp­tion for for­eign­ers buy­ing shares through the ex­ist­ing Shang­hai Stock Con­nect pro­gram, which be­gan two years ago.

The new Shen­zhen link is ex­pected to make about 880 stocks ac­ces­si­ble to for­eign in­vestors. They in­clude au­tomaker Chongqing Changan Au­to­mo­bile Co, TCL Corp, China’s big­gest con­sumer-elec­tron­ics maker, and ap­pli­ance maker Midea Group Co. Main­land in­vestors will be able to buy Hong Kong small caps for the first time.

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.