China securities regulator sees favourable tax outcome for mutual fund scheme
China’s securities regulator said on Friday it expects the country’s tax authorities to view favourably a landmark new mutual fund recognition scheme between Hong Kong and the mainland, reports Reuters.
The plan launched on July 1 allows funds domiciled in Hong Kong and China to be sold in each others’ markets, and investors are awaiting details of how China’s tax laws will affect the scheme.
“[China’s tax regime] is guaranteed not to have a negative impact on mutual fund recognition,” an official from the China Securities and Regulatory Commission told a regulatory conference in Hong Kong.
Earlier on Friday, an official from China’s foreign exchange regulator said fund investments in the scheme will be able to be denominated in yuan or other currencies.
