CBN丨China released preferential tax policies for investors

Hi everyone. I’m Stephanie LI.

大家好，我是主持人李莹亮。

Coming up on today’s program.

重点提要 

• Chinese regulators announce tax breaks for investors for tech firms' CDRs as the latest step to boost stock market;

• Hong Kong and Macau announced to ban some Japanese seafood from Thursday.

Here’s what you need to know about China in the past 24 hours 

中国经济要闻

China on Tuesday introduced a number of preferential tax and fee policies as part of the nation's broader efforts to boost capital market vitality and expand opening-up.

The policies are aimed at promoting the two-way opening-up and healthy development of the capital markets on the Chinese mainland and Hong Kong, supporting the opening-up of the goods futures market, ramping up the implementation of the innovation-driven development strategy and boosting the development of venture capital enterprises, according to the finance ministry.

To support the return of overseas-listed Chinese technology companies, tax breaks for individuals and institutions that invest in overseas-listed innovative firms' Chinese depositary receipts (CDRs) will be able to enjoy tax benefits from September 21, 2023 to December 31, 2025.

For domestic individuals, any profit made on the transfer of the CDRs will be tax-exempt in China. Domestic corporate investors needn't pay taxes in China on profits from the transfer of the CDRs, as well as dividends and bonuses obtained by holding the CDRs. 

For qualified foreign institutional investors and Renminbi qualified foreign institutional investors, the gains from trading innovative enterprises' CDR and the dividends obtained from holding innovative enterprise CDR, will be exempted from corporate income tax.

Both individual and institutional investors will also be exempt from value-added tax. 

Additionally, to support the opening-up of the commodity futures market, income obtained by overseas individual investors from investing in commodity futures that are approved by the State Council such as domestic crude oil, will be temporarily exempted from personal income tax, effective until Dec 31, 2027.

Meanwhile, value-added tax will be temporarily exempted for transactions of bonded delivery of commodity futures approved by the State Council.

活跃资本市场再获税收优惠政策支持。

8月22日，财政部、税务总局、证监会（以下简称“三部门”）及国家发改委等发布多达6个税收政策，主要为对已出台政策的再延续，支持多个细分资本市场的发展，税收优惠涉及个人所得税、企业所得税、增值税、印花税等，相关政策执行至2025年或2027年底，最长可达超过4年。

6项税收政策包括：

对经国务院批准对外开放的货物期货品种保税交割业务，暂免征收增值税，执行至2027年12月31日。

继续实施创新企业境内发行存托凭证试点阶段有关税收政策：自2023年9月21日至2025年12月31日，对个人投资者转让创新企业CDR取得的差价所得，暂免征收个人所得税。

延续实施创业投资企业个人合伙人所得税政策：创投企业选择按单一投资基金核算的，其个人合伙人从该基金应分得的股权转让所得和股息红利所得，按照20%税率计算缴纳个人所得税。

对内地个人投资者通过沪港通、深港通投资香港联交所上市股票取得的转让差价所得和通过基金互认买卖香港基金份额取得的转让差价所得，继续暂免征收个人所得税。

对境外个人投资者投资经国务院批准对外开放的中国境内原油等货物期货品种取得的所得，暂免征收个人所得税。

延续实施上市公司股权激励有关个人所得税政策：居民个人取得股权激励，符合相关条件的，不并入当年综合所得，全额单独适用综合所得税率表，计算纳税。

Moving on to regional highlights

区域观察

• The number of exhibitors and the exhibition area of the China International Industry Fair, which will be held in Shanghai between Sept. 19 and Sept. 23, have reached new records. More than 2,600 companies from 27 countries and regions around the world will display their products on 300,000 square meters of space across nine exhibition areas at the 23rd edition of the fair next month, according to the organizers yesterday. The number of overseas exhibitors this year has recovered to the pre-pandemic level, with almost 30 percent of the area occupied by offshore brands.

• 第23届中国工博会规模创新高：第23届中国国际工业博览会将于9月19日至23日在国家会展中心（上海）举行，规模创历史新高。据22日工博会宣介路演活动上的介绍，本届工博会以“碳循新工业、数聚新经济”为主题，展览面积达30万平方米，设9个专业展，吸引来自全球27个国家和地区的2600余家企业参加，有近三成参展面积来自境外企业。

• Land sales have been cooling significantly in many key Chinese cities in the second half, leaving many plots unsold, as cash-strapped property developers become less willing to buy land. There were no bidders for two plots in Shenzhen’s Longgang district in a land auction held in early August. And in another auction in the city held on Aug. 18, one plot out of the four up for grabs did not sell. In July, 26.5 percent of land parcels in key cities went unsold, the highest since last year, according to think tank China Real Estate Information Corp. Revenue from land sales in 300 major cities plunged 27 percent in July from the same period last year, widening 7 percentage points from June, according to China Index Holdings.

• 热点城市土拍降温明显：受房企在有限的资金压力下拿地力度、参拍意愿的再减弱影响，热点城市土拍近来频现降温迹象。8月初，龙岗区2宗地块则因无人竞价惨遭流拍。这是年内深圳首次出现含宅地块的流拍现象。此后的18日，深圳出让的4宗地块中，再有1宗流拍。据克而瑞数据，7月份，重点城市土拍流拍率已高达26.5%，创2022年以来新高，合肥、佛山等地中远郊均出现多宗流拍地块。另据中指院统计，7月份，300城土地出让金收入累计同比下降27%，较6月扩大7个百分点。

Greater Bay Area, Greater future

新使命，大未来

• Hong Kong will impose an indefinite ban on Japanese seafood imports from 10 prefectures and publish the results of daily tests on other food from the country starting on Thursday, when Tokyo begins to discharge treated waste water from the Fukushima power plant. The SAR government expressed “strong opposition” to the controversial plan on Tuesday. The ban will apply to aquatic imports from 10 Japanese metropolis or prefectures including Tokyo, Fukushima, Chiba, Tochigi, Ibaraki, Gunma, Miyagi, Niigata, Nagano and Saitama, covering all fresh, frozen, chilled, dried or processed seafood, as well as sea salt and seaweed. The Macau SAR also announced to implement the ban from Thursday, covering goods from the same 10 Japanese regions.

• 港澳24日起禁止日本部分地区水产品等进口：针对日本政府决定近日启动福岛核污染水排海一事，香港特区政府和澳门特区政府8月22日表示强烈不满和反对，并宣布于8月24日起禁止日本部分地区的水产品等进口。香港特区政府环境及生态局局长谢展寰8月22日表示，24日起香港将禁止源自东京、福岛、千叶、�木、茨城、群马、宫城、新�、长野和�玉10（都）县的水产品进口，包括所有活生、冷冻、冷藏、干制或以其他方式保存的水产品、海盐，以及未经加工或经加工的海藻，并继续加强对日本进口食品的检测。澳门特区政府当天也宣布从8月24日起禁止进口源自日本上述10个（都）县的鲜活食品、动物源性食品、海盐及海藻等食品。

Next on industry and company news

产业及公司新闻

• China will implement a batch of demonstration projects featuring advanced green and low-carbon technologies, the National Development and Reform Commission said Tuesday. The projects will focus on several key sectors, including non-fossil energy, the fields of industry and construction, new and efficient types of power grids and energy storage, as well as carbon dioxide capture. Funding support, such as investment from the central budget, as well as financial and tax policy support, will be strengthened for these projects, the NDRC said.

• 推动绿色低碳先进技术示范工程实施：国家发改委等部门联合印发的《绿色低碳先进技术示范工程实施方案》22日对外公布。方案提出将布局一批技术水平领先、减排效果突出、减污降碳协同、示范效应明显的项目，并明确了绿色低碳先进技术示范工程重点方向等。《方案》明确重点方向，其中包括：非化石能源先进示范项目、先进电网和储能示范项目、减污降碳协同示范项目和二氧化碳捕集利用项目。为进一步强化项目保障，《实施方案》分别从加强中央预算内投资等资金支持，加强金融税收政策支持和加强资源环境要素保障方面提出具体的支持举措。

• Chinese e-commerce giant JD.Com has lowered the minimum spend threshold to qualify for free shipping of products from its self-operated stores by 40 percent for the first time. From today, JD’s self-operated products under 59 yuan will enjoy free delivery, the firm announced. The threshold was 99 yuan before. For the book section, the minimum spending amount for free shipping will remain 49 yuan. JD Plus members will enjoy unlimited free delivery without using coupons.

• 京东首次下调自营商品包邮门槛：8月23日起，京东商城将对运费规则进行调整，据悉针对非会员免基础运费门槛从99元下调至59元(图书类商品为49元)，会员将取消运费券机制，所有自营商品下单均免运费，不限制金额和次数。

• Chinese state-owned carmaker Guangzhou Automobile Group (GAC) has joined its domestic rivals in tapping Southeast Asian demand with a shipment of 100 electric cars to Thailand, marking its first overseas consignment into a market historically dominated by Japanese carmakers. 

• 广汽埃安进军泰国整车市场：8月22日，广汽埃安宣布旗下100辆AION Y Plus车型将自广州南沙港出发，随船出口至泰国林查班港。据悉，这是广汽埃安首次向海外市场发运整车。

• Honor rejected a media report that said the Chinese smartphone maker has set up a subsidiary in India, adding that it also has no plans to do so. Honor does business in India through a distributor, and has no plans for technology and product or service management transfers, the company said Tuesday.

• 荣耀表示无在印度成立子公司计划：8月22日，荣耀方面回应称，荣耀公司在印度一直通过分销商的方式开展业务，目前在印度没有子公司也没有成立子公司的计划，不存在也没有任何技术转让计划（包含且不限于软硬件、产品和服务管理等转让）。 

Earnings reports express

财报速递

• China Construction Bank(CCB), one of China’s biggest state-owned lenders, posted a net profit of 167 billion yuan in the first six months, up 3.4 percent year on year, according to its interim financial reports today. CCB’s total operating income dipped 0.6 percent to 400 billion yuan. The lender had total assets of 38.3 trillion yuan by the end of June, representing a jump of 10.6 percent, with total liabilities of 35.3 trillion yuan and 27.6 trillion yuan in deposits, up 11.3 percent and 10 percent respectively. Non-performing loan ratio stood at 1.37 percent. In the first half of the year, net interest income of CCB saw a decrease of 1.73 percent, or 5.5 billion yuan from the same period last year, which accounted for 78 percent of the bank’s operating revenue.

• 建行上半年净利增长3.4%：建设银行8月23日公告，上半年营收4002.55亿元，同比减少0.59%；归母净利润1673.44亿元，同比增长3.36%；基本每股收益0.67元。上半年，集团资产总额38.25万亿元，增幅10.56%。负债总额35.30万亿元，增幅11.27%；其中吸收存款27.63万亿元，增幅10.42%。经营效益保持同业领先。资本充足率17.40%；集团不良贷款率1.37%，稳中有降；拨备覆盖率244.48%。经营效益方面，上半年，集团实现利息净收入3121.85亿元，较上年同期减少54.84亿元，降幅为1.73%；在营业收入中占比为78.00%。 

• Chinese tech giant Baidu delivered better-than-expected financial results for the April-June period on Tuesday, with its total revenue reaching 34.1 billion yuan, an increase of 15 percent year-on-year, the most in more than a year. Its non-GAAP net profit stood at 8 billion yuan in the second quarter of this year, surging 44 percent year-on-year. Within Baidu's core businesses, online marketing revenue rose by 15 percent to 19.6 billion yuan in the second quarter, and non-online marketing revenue added 12 percent to 6.8 billion yuan. Baidu's co-founder and CEO Robin Li said areas including advertising, healthcare, financial services, local services and travel were outperforming and that they expected the momentum to continue. 

• 百度二季度营收增长超预期：8月22日，人工智能公司百度公布了截至2023年6月30日的第二季度未经审计的财务业绩。数据显示，百度2023年第二季度营收341亿元人民币，同比增长15%。非GAAP净利润为80亿元人民币，同比增长44%。网络营销收入196亿元人民币，同比增长15%，非网络营销收入68亿元人民币，同比增长12%。李彦宏表示，百度在包括广告、医疗保健、金融服务、本地服务和旅游等领域均表现出色，并表示百度致力于以生成式人工智能和大语言模型为基石，构建起崭新的增长引擎，推动可持续的长期增长。

• Chinese short-video platform Kuaishou Technology reported an interim net profit of 607 million yuan, compared with a loss of 9.4 billion yuan during the same period last year. During the second quarter, the Kuaishou App achieved an average of 376.0 million daily active users and 673.3 million monthly active users, demonstrating a year-over-year growth of 8.3 percent and 14.8 percent respectively, setting a new record for the size of its user community. In the second quarter, Kuaishou’s revenue jumped 28 percent to 27.7 billion yuan, mainly driven by online marketing which hit 14.3 billion yuan, up 30.4 percent year-on-year and constituting 51.7 percent of total revenue.

• 快手中期利润扭亏为盈：快手科技8月22日发布2023年第二季度及中期业绩。财报显示，快手科技2023年上半年期内利润6.05亿元，上年同期的期内亏损94.3亿，实现大幅扭亏为盈。二季度，快手应用的用户规模持续增长，平均日活跃用户达3.76亿，同比增长8.3%，平均月活跃用户达6.73亿，同比增长14.8%，两者均突破历史新高。财报显示，快手科技2023年上半年营收为529.61亿元，较上年同期增长23.9%，二季度营收为277.44亿元，同比增长27.9%。其中，来自线上营销服务收入达143.5亿元，较上年同期的110亿元增长30.4%，占营收的比例为51.7%。

• Geely Automobile saw its first-half net profit grow 1.2 percent to 1.57 billion yuan from a year ago, while total revenue rose 26 percent year-on-year to 73.2 billion yuan, closely aligned with its projections, the company said. Despite a demand recovery that was not as strong as anticipated, the company managed to notch up sales of 694,045 units, a 13 percent year-on-year upswing. Regarding new energy vehicles, Geely sold a total of 157,889 pure electric vehicles and plug-in hybrid electric vehicles during the period, surging by 44 percent compared to the previous year. Additionally, exports rose to 121,185 units in the first half, representing a yearly increase of 38 percent.

• 吉利上半年营收创新高：8月22日，吉利汽车控股有限公司发布2023年上半年财报。财报显示，吉利汽车上半年实现营业收入731.8亿元，同比增长25.8%，创同期新高。上半年吉利汽车归属公司股权持有人溢利15.71亿元，同比增长1.2%。上半年，吉利汽车累计销售694045辆，同比增长13%。在新能源方面，吉利汽车上半年共销售157889辆纯电动汽车和插电式混合动力汽车，同比增长44%。上半年，吉利共出口了121,185台汽车，较去年同期增长了38% 。

Switching gears to financial news

金融市场消息

• The People's Bank of China has given the green light to China UnionPay, the world's biggest card network, to raise its registered capital by 240 percent to 9.96 billion yuan, according to the central bank's website on Tuesday. China UnionPay will add over 7 billion yuan in capital from 2.93 billion yuan, which analysts believe will improve UnionPay’a ability of risk control and business expansion.

• 中国银联增资至99.63亿元：中国人民银行官网最新更新信息显示，近日，中国人民银行同意，中国银联股份有限公司注册资本由人民币29.3亿元变更为人民币99.63亿元。完成实缴后，中国银联本轮增资金额超过70亿元，增幅逾240%。此次增资完成后，中国银联资本规模将为此前的3倍多。分析认为，注册资本金的增加，对于中国银联提升风控管理水平，增加自身科技能力，持续拓展新兴业务和扩大国际服务范围都会有帮助。

  

• Manulife-Sinochem Life Insurance has introduced its first private pension insurance product to cater to the aging population. The Chinese JV of the Canadian financial giant launched the Worry-Free Retirement Pension Annuity on Tuesday with an annuity that grows at an average compound annual rate of 3 percent if chosen to be received yearly. Eligible participants can furthermore enjoy concierge services, as well as home-based or community-based care.

• 中宏保险发布首款个人养老金保险产品：8月22日，国内首家中外合资人寿保险公司中宏保险发布其首款个人养老金保险产品《中宏养老无忧养老年金保险》。”养老无忧"产品参保人可享受个人养老金递延纳税优惠政策。"养老无忧"每年的养老年金领取金额按基本保险金额的3%复利递增。此外，符合条件的客户还能获得中宏保险精心打造的养老综合服务，包括养老管家服务、居家养老服务、护理型机构服务以及高端养老社区服务，并可实现权益全家共享。

Wrapping up with a quick look at the stock market

股市收盘情况

• Chinese stocks sank on Wednesday with the benchmark Shanghai Composite down 1.3 percent and the Shenzhen Component plunged 2.4 percent, while Hong Kong stocks ended slightly higher with the Hang Seng index up 0.3 percent and the TECH index adding 0.2 percent.

• A股大跌港股微涨：周三A股三大指数全天低开低走。截至收盘，沪指跌1.34%，深成指跌2.41%，创业板指跌2.3%。沪深两市全天成交额7059亿元，较上个交易日缩量1124亿。北向资金全天净卖出104.61亿元，连续13日净卖出。港股恒生指数收涨0.31%，恒生科技指数收涨0.2%。

Biz Word of the Day

财经词汇划重点

• A Chinese Depositary Receipt (CDR) is a depositary receipt that represents a pool of foreign equity that is traded on Chinese exchanges.

• 中国存托凭证(CDR)是指在境外(包括中国香港)上市公司将部分已发行上市的股票托管在当地保管银行，由中国境内的存托银行发行、在境内A股市场上市、以人民币交易结算、供国内投资者买卖的投资凭证，从而实现股票的异地买卖。

Executive Editor: Sonia YU

Editor: LI Yanxia

Host: Stephanie LI

Writer: Stephanie LI 

Sound Editor: HUANG Qingyi

Graphic Designer: ZHENG Wenjing, LIAO Yuanni

Produced by 21st Century Business Herald Dept. of Overseas News.

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编委:  于晓娜

策划、编辑：李艳霞 

播音：李莹亮

撰稿：李莹亮、实习生黄青衣

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