What to expect from China’s new investment laws
On 19 January 2015 MOFCOM issued a draft of the PRC Foreign Investment Law for public comment (FIL). Below we highlight key features of the new foreign investment regime. While the road to the actual passage of the FIL will likely take at least another eighteen months, it is clear that once adopted, the FIL’s impact...
Qualifying for DTA Benefits in China
China has made great strides in the past five years in building up its regulation in the area of double taxation avoidance, as well as implementation assurance techniques, but qualifying for DTA benefits remains a complex procedure. The first step is to determine whether you are a tax resident of a country that has an...
Economic linkages between New Zealand and China
The Reserve Bank of New Zealand published an Analytical Note on “Economic linkages between New Zealand and China” in October 2014. Over the past several decades, China’s share of global output and trade – and of trade with New Zealand – has increased rapidly. This note outlines some of the ways...
China Corporate Bond Market Overtakes the U.S. as ...
China has overtaken the United States as home to the world’s biggest corporate borrowers, with some US$14 trillion of debt, says a report newly issued by Standard & Poor’s. The report predicts that China will absorb 30 percent of all global debt over the next five years and that the Asia-Pacific region will...
Price volatility signals the yuan is closer to becoming a ...
By Gordon French, Asia-Pacific head of global banking and markets at HSBC. Gordon French says even with the current capital controls, it has become an attractive asset. The recent dip in the value of the Chinese currency surprised many in the markets, but it shouldn't have. The renminbi occupies a position all of its...
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Renminbi: good for business
By Gary Cross, Head of Global Trade and Receivables Finance, HSBC New Zealand In a struggling global economy, finding a competitive edge becomes all the more important, and a new HSBC survey indicates that for companies doing business in China, there are significant advantages to doing business in renminbi. The...
RMB: Appreciation and reform not mutually exclusive
By Ju Wang, Senior FX Strategist, Research, HSBC Markets (Asia) LimitedThe RMB has experienced increasing volatility in recent weeks in light of new regulations and strong inflows that have seen the currency touch record highs versus the USD. This highlights the interesting challenge faced by Chinese policymakers – how...
Import-Export Taxes and Duties in China (With exclusive ...
By Shirley Zhang, Dezan Shira & Associates Importing to and exporting from China generally involves three types of taxes: Value-added tax; Consumption tax; and Customs duties. 1. Value-added Tax for Imported Goods Imported goods to China are subject to value-added...
E-commerce and the Chinese consumer
By Damon Paling, Partner PwC Shanghai E-commerce in China is forecasted to grow to an over US $350 billion industry by 2016 as internet connectivity expands and consumer purchasing power grows. Before a New Zealand company is online and making sales, they are faced with the challenging task of setting up their web...
New wave of financial reforms set to increase ...
Continued reforms by The People’s Bank of China (PBOC) are set to further accelerate the use of Renminbi (RMB) in international trade and investment and reinforce the move towards full convertibility of the currency. Reforms such as the widening of the RMB daily trading band, recent capital account deregulation and the...
RMB Use Internationally Picks Up but Still Well Short of ...
In 2010, China’s currency, the renminbi, picked up pace toward becoming a world currency. In June the Chinese government extended its renminbi trade settlement scheme to include 18 provinces and cities, as well as Guangdong province and Shanghai, which are now allowed to handle all international service transactions and...
Tax: Time to review your RO
With the latest changes in the Chinese tax legislation, it is time for NZ investors with Representative Offices (ROs) in China to review their business plan. ROs have been used by many foreign firms as the initial step to enter the Chinese market. An RO is a legal extension of the foreign head company and...