Daily Pulse: Policymakers Exempt Taxes on Investments of HK Funds
The Ministry of Finance (MoF), State Administration of Taxation (SAT) and CSRC jointly released a new policy to exempt individuals from a capital gain tax on selling Hong Kong funds. The new rule will be effective for one year. However, investors will still need to pay 20% for fund distributions. In other news, US-based asset management company (AMC) State Street [STT:US] has established a wholly-owned foreign-owned enterprise (WFOE) in China, namely Zhuo Si Investment Management (Shanghai). State Street invested USD2m into the subsidiary. Today, A-share markets declined. SHCOMP dropped 0.82% to 2,576.65, SICOM decreased 0.82% to 7,530.32, and CSI 300 went down 1.04% to 3,128.43. ChiNext Price Index slid 0.45% to 1,293.34. The Hang Seng Index dipped 1.05% today to 25,814.25.