China RQFII ETF managers secure capital gains tax exemptions

Boat in China

The uncertainty surrounding the application of Chinese capital gains tax on renminbi qualified foreign institutional investor (RQFII) funds has been resolved by at least two RQFII exchange-traded fund (ETF) providers, who have confirmed they are now no longer withholding a 10% provision for capital gains tax on their funds, except for land-rich shares. One of the biggest challenges for RQFII ETFs was the uncertainty of capital gains tax treatment for foreign investment into Chinese equities b