Nov. 10 (Bloomberg) -- China plans to stimulate its stock markets by announcing bigger tax deductions on dividends for long-term investors, the Xinhua News Agency reported, citing the China Securities Regulatory Commission.
“The tax policy will guide investors to holding stocks for the long term, and companies paying high dividends will attract more attention in the market,” the agency reported today, citing an unidentified CSRC spokesperson.
The CSRC said today that authorities have agreed to add 200 billion yuan ($32 billion) to the existing 70 billion-yuan quota for the nation’s local-currency renminbi qualified foreign institutional investor program and loosen restrictions because of “strong demand” from overseas investors. Capital inflows under foreign institutional investor programs have recently accelerated, Xinhua reported, citing the commission.
The CSRC will announce new measures shortly to lower securities brokerages’ capital requirements and expand the scope of their proprietary trading, the official news agency said.
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