Capital gains derived may be subject to tax for qualified foreign institutional investors

The chinese Securities Regulatory Commission and the chinese State Administration of Taxation have recently agreed on expanding the taxation of qualified foreign institutional investors.
Currently, these investors are subject to enterprise income tax at a rate of 10% on dividends, profits and interest, but are exempt from tax on capital gains on securities. It is expected that the capital gains derived by qualified foreign institutional investors would be included in the taxable income