Global

Details

  • Service: Tax, International Corporate Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 8/20/2012

China - Foreign investment in PRC listed securities  

August 20:  China Securities Regulatory Commission issued guidance that revises the general regulation governing the qualified foreign institutional investment (QFII) program, to permit foreign investment in PRC listed securities.

The new QFII regulation (issued 27 July 2012) is viewed as a step towards relaxation of China’s strict capital controls on inbound equity portfolio investments, in that it significantly lowers the threshold for QFII license applications and allows “smaller” foreign investors, private equity funds, and other institutions to enter the market for the first time.


While new QFII license applicants need to be aware of long-standing uncertainties concerning the tax treatment of QFII arrangements, the new QFII rules are viewed as enhancing the potential for investments by foreign institutional investors in PRC listed securities.


Read an August 2012 report [PDF 337 KB] prepared by the KPMG member firms in Hong Kong and China: QFII programme changes facilitate greater foreign institutional investor’s participation in PRC listed securities




©2012 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.


The KPMG logo and name are trademarks of KPMG International.


KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.


The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.


Direct comments, including requests for subscriptions, to go-fmtaxnewsflash@kpmg.com.
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.

 

Share this

Share this

Subscribe

Subscribe to receive the latest TaxNewsFlash email alerts (you must select the option for TaxNewsFlash)


Already a Subscriber? Login


Not a member? Subscribe now

Contact us