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By Leo Zhang On June 3, the agreement for the avoidance of double taxation (DTA) between Hong Kong and Portugal, signed on March 2, 2011, came into force after obtaining approval from authorities on both sides. The DTA, which specifies the taxation rights of Hong Kong and Portugal, will also offer preferential tax rates on a raft of passive incomes. Analysts said that the deal could prompt investors, especially those in the Chinese mainland, to use Hong Kong as a gateway to explore Portugal as cross-border economic activities and trade links between the two territories strengthen. This brought the number...

NEWS 2020

By Baron Laudermilk The UK government has decided to abandon the old way of managing its financial sector, including abolishing the Financial Services Authority, and establishing three new regulatory bodies: the Financial Conduct Authority (FCA), the Financial Policy Committee, and the Prudential Regulation Authority (PRA). Institutions that have significant financial risk, such as banks and insurers, will be dual-regulated by the PRA and the FCA. This is known as the win peaks model. The PRA will promote the safety and soundness of PRA authorized firms and ensure they carry their business properly and do not damage the financial system. The...

NEWS 2020

By Leo ZhangEuropean companies and institutional investors with an interest in China said they welcome the launch of renminbi-denominated products and services in London, according to a report unveiled on June 25 by the City of London Corp.The report, Corporate and Investor Perspectives on London Renminbi Business, was the second report by the City of London on the RMB initiative after the city set a goal of becoming a centre for yuan business. The first report, London: A Centre for Renminbi Business, was published in April.The new report examined the experiences of European firms using RMB for payments and investments....

NEWS 2020

By Baron LaudermilkOn June 11, China State Administration of Foreign Exchange (SAFE) released new rules on private outbound investments in order to solve the difficulties and lack of liquidity faced by private companies in terms of overseas financing. The document, entitled the Circular of State Administration of Foreign Exchange on Foreign Exchange Administration in Relation to Encouraging and Guiding the Healthy Development of Private Investment, is also intended to simplify the foreign exchange control policies for outbound investment activities by private companies. The circular main content includes simplifying the management of outbound direct investment capital remittance. The main difference between...

NEWS 2020

By Anas Almasri The latest addition to China network of Double Taxation Agreements (DTA) was recently concluded with Denmark, while Hong Kong signed a similar agreement with Mexico increasing its own tally. Both documents were inked in the second half of June, the former in Copenhagen on June 16th and the latter in Los Cabos on June 18th. Before heading to the two day G20 summit in Mexico, president Hu Jintao visited Denmark in a first such trip by a Chinese head of state since 1950, when the two sides established diplomatic relations. During his visit, he met with Danish...

NEWS 2020

By Iain Manley When Chinese Premier Hu Jintao visited Hong Kong at the end of last month, members of his party outlined an important step for the internationalisation of the renminbi: the establishment of a special economic zone adjacent to Shenzhen, named Qianhai Bay. Set on 15 square kilometres of reclaimed land, Qianhai Bay aims to become a service industry hub. Its special policies are targeted at businesses in six categories, including finance, taxation and telecommunication, but the most important of these is a measure that will enable Hong Kong banks to lend renminbi directly to mainland companies, significantly reducing...

NEWS 2020

By Baron Laudermilk According to the head of the Apline Country financial regulator, Liechtenstein banks should focus on asset management and attracting capital from wealthy Asian clients to restructure and rebuild their businesses. This has become a main initiative for many Liechtenstein banks as the European economy continues to hang in limbo as the EU determines how to rebuild the region's economy. Financial Market Authority Chief Executive Officer Mario Gassner said, o get earnings back to where they used to be we need to implement new business ideas. With classic private banking it will be difficult to attract new money....

NEWS 2020

By Leo Zhang Chinese securities regulators have approved the first batch of cross-border exchange-traded funds in both the mainland and Hong Kong, in the latest move to open the nation capital account and push forward the internationalization of the yuan. Under licensing by Hang Seng Indexes Co, China Asset Management Co, one of the key mainland fund houses, started last week to sell units in a fund that will be linked to the Hang Seng Index and listed on the Shenzhen Stock Exchange. Meanwhile, E Fund Management Co, another bellwether mainland fund company, has won the green light to issue...

NEWS 2020