Stockholm, Oct. 27 (ChinaEuropeDialogue) — China will extend the preferential tax policy for overseas investors investing in the mainland bond market, as part of its efforts to promote opening-up and attract foreign investment, the State Council’s executive meeting chaired by Premier Li Keqiang decided on Wednesday.

The meeting noted that China will continue to expand opening-up, leverage the strengths of its big domestic market and foster a more enabling business environment. More will be done to attract foreign investment and encourage more foreign investors to participate in China’s domestic development through the bond market.

“We will make greater efforts to attract foreign investment, and welcome overseas investors to our bond market on the mainland,” Li said.

The meeting decided that the policy to exempt overseas institutional investors from corporate income tax and value-added tax on their bond interest gains arising from investment in the mainland bond market will be extended till the end of the 14th Five-Year Plan period (2021-2025), i.e. December 31, 2025.

Competent departments shall go through the record-filing process with the Standing Committee of the National People’s Congress in accordance with laws and regulations, and in the meantime strengthen market regulation and curb irregularities such as excessive speculation and market manipulation.

“We should respond proactively to the concerns of market entities, effectively conduct cross-cyclical adjustments and anchor market expectations to help enterprises survive and thrive,” Li said. Enditem

By Chinaeuropenet

Xuefei Chen Axelsson is an independent media person. She has been a journalist for 30 years. She studied English, International politics, and sustainable development. She has been to Zimbabwe, Mozambique, Namibia and South Africa, Australia, New Zealand and America, Canada, France, Germany, Spain and all the nordic countries including Sweden, Finland, Denmark, Norway, Iceland and Britain. She is good at talking with all kinds of people and exchange ideas and serves as a bridge between China and the world.

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