Dear- If you are Chinese trader or have Chinese friend to ask, please do it for me. 1) I heard that Chinese trader pay ONLY 0.1% transaction tax, with NO annual income tax for the portion of annual profit. Is it true? 2) Which broker offers cheap commission in China and what is their commission? Although China government does NOT accept foreign investment NOW, they will open the market sometime, as used to be in many other Asian countries.
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Hey JK, Bloomberg wrote a story on the chinese market on Thursday I think. Basically the president was angry because China wasn't going to be accepted in the MSCI index, they have tried 3 times already BTW. I wrote on Bloombergs FB that they are the dumbest people around. I mean, they won't allow access to their market for foreigners. How are you expecting to become an international financial center and gain acceptance when you won't even let any1 trade on your market?
No one knows how and when they will open the stock market to foreigners. The housing market is already open. By capitalism principle, China cannot continue to close the stock market, like North Korea. There might be some alternative way, such as investing by a company (instead of personal investment), which is already open to foreign company, if I heard correctly. Of course, it will cost more money and time to make a new (close to PAPER) company.
I'm glad they weren't accepted into MSCI EMI as their handling of market routs is like a 5 year old child. They are not transparent and do not deserve to be in any international index until they stop pulling BS.
Dear- If you are Chinese trader or have Chinese friend to ask, please do it for me. 1) I heard that Chinese trader pay ONLY 0.1% transaction tax, with NO annual income tax for the portion of annual profit. Is it true? 1) 0.3% is impossible,Chinese trader need to pay about VAT 16%+business tax 3%-20% domestic,but when you trading overseas some product like raw material you need to pay 16%,but high technology products maybe less than 0.1%,high technology products in China you will have a good tax refund. 2) Which broker offers cheap commission in China and what is their commission? Although China government does NOT accept foreign investment NOW, they will open the market sometime, as used to be in many other Asian countries. 2) China government accept foreign investment from before 1987(Because I know KFC come to China at that time),foreign investment also allowed,like APPLE OPERATIONS INTERNAL,they invest 1,000,000$ then all the shareholder is from US. I suggest you first time come here can work with a Chinese partner first,when you stay and find this market is well you will know how open China market now. ------------------------ WIKI WANG General Director Email: yadifei@hotmail.com Skype: wikiwang1986 Wechat & Whatsapp: +8613924008066
Not sure what the guy above is on about. There are probably on paper some income taxes due but In practice in China for individuals (afaik but that also includes folks with portfolios much bigger than ur average ETer) it works like OP mentionned. 0.1% transaction tax on buying A shares than no tax on income (i doubt this imcone is declared, the government could crack down anytine as there are not many secrets banks and brokerages can keep fron government but there is still a strong laissez faire fiscal culture in China). Dividends seem to face some witholding tax depending on the stock holding time. As of brokerages without looking much into the matter I ve seen main banks offering 0.02 to 0.03% commissions. This information only applies to chinese nationals, but one can buy H shares on HKSE. Commish are usually a bit higher there and witholding tax on dividends usually 10%. Transaction tax the same. Income tax depends on where u live. 0% in my case