(CH) CHINA DRAFT CORPORATE INCOME TAX LAW SETS UNIFIED RATE OF 25% (AS EXPECTED) - Over the past 20 years, China has offered hefty tax breaks to lure foreign investment. Chinese companies lose 33% of their profits to taxes; their foreign counterparts pay an average of 15% due to a myriad of breaks People may not realize this, but the blowoff top in chinese markets in December 06 can be directly linked to this tax proposal. By pure Chinese companies having a reduced tax burden of 33%, earnings and valuations metrics significantly changed. Now we are at a point in market pricing where this is 'priced out' entirely, at least in the hong kong china mainland shares. Anyway, I wonder if their markets will respond to this law becoming official, and will we hear about it in the correction-obsessed US press? Am I the only one who noticed this? Any thoughts here.