China Tax/Business News Flash

Dec 2016, Issue 39

A Glance at the tax implications of the Shenzhen - Hong Kong stock connect

The Shenzhen - Hong Kong Stock Connect (SZ-HK Stock Connect) has been launched on 5 December 2016. It is modelled after the Shanghai - Hong Kong Stock Connect (SH-HK Stock Connect) and offers more opportunities for investors to invest in the China stock markets. The Ministry of Finance ("MOF"), the State Administration of Taxation ("SAT") and China Securities Regulatory Commission ("CSRC") jointly released Caishui[2016]No.127 on 2 December 2016 to clarify the China tax policies in relation to the SZ-HK Stock Connect. These China tax policies are similar to those for the SH-HK Stock Connect. We hereby summarise the major China tax and Hong Kong tax issues which investors of both sides should be aware of when making investment via this new investment channel.

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Peter Ng

China and Hong Kong Tax Leader, PwC Hong Kong

Tel: +[852] 2289 1828

Spencer Chong

Partner, PwC Hong Kong

Tel: +[86] (21) 2323 2580

Edwin Wong

Lead Partner, China Outbound Investment Service; China North Tax Leader, PwC Hong Kong

Tel: +[86] (10) 6533 2100

Alan Yam

China Central Tax Leader, PwC Hong Kong

Tel: +[86] (21) 2323 2518

Charles Lee

China South and Hong Kong Tax Leader, PwC Hong Kong

Tel: +[852] 2289 8899

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