Just-Launched Bond Connect to Bring USD 1 Trillion into China in Next Decade
July 10, 2017
Several key China-related developments arose during last week’s Independence Day celebrations, events we have summarized here for those who might have missed them.
The July 3rd launch of the Bond Connect program was undoubtedly the most-watched news item. Onlookers expect the scheme to facilitate USD 200 billion in inflows within the first two years, a figure that can grow to 1 trillion within the decade if China plays its cards right.
Outside of the securities realm, other regulators kept busy as well. The Ministry of Finance and State Administration of Taxation jointly announced a 3% VAT tax on returns on assets under management, while China’s State Council paved the way for IRA-like, tax advantaged commercial pension schemes. Rounding out the note, we explain why RBS sold their Chinese joint venture and summarize China’s abysmal box office performance.
Topics covered: Bond Connect, China Pension Reform, US-Chinese Joint Ventures, VAT Reform, China’s Box Office
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