BEIJING, Dec. 4 (Xinhua) -- China's Ministry of Finance announced on Wednesday that mainland retail investors will continue to enjoy income tax exemptions for gains obtained through Shanghai-Hong Kong and Shenzhen-Hong Kong stock connect schemes.
File photo: CGTN
The tax breaks will continue from Dec. 5, 2019 to Dec. 31, 2022, the ministry said in a brief statement on its website.
Profits made from Mainland-Hong Kong Mutual Recognition of Funds (MRF) will also be exempt from income taxes during the period, according to the statement.
In 2014, China launched the Shanghai-Hong Kong Stock Connect to let investors on the mainland and Hong Kong trade selected stocks on each other's exchanges. A similar link between Shenzhen and Hong Kong was launched two years later.
The MRF scheme, launched in 2015, allows qualified funds on either side to offer directly to retail investors in each other's markets after obtaining authorization or approval under streamlined procedures.