Central bank signals resumption of RQDII program

CHINA’S central bank Thursday signalled the resumption of an outbound investment program that allows qualified domestic financial institutions to buy yuan-denominated products in overseas markets, the latest move by the government to relax capital controls.

The People’s Bank of China published a notice on its website updating the regulations around the Renminbi Qualified Domestic Institutional Investors (RQDII) program, which was suspended unofficially in late 2015, along with several other outbound programs amid fears of capital flight and worries of rapid yuan depreciation.

UBS seeks nod for controlling stake in venture

UBS Group is looking for a controlling stake in its China joint venture, UBS Securities Co., after the country’s securities regulator announced new rules earlier this year easing restrictions on foreign ownership of brokerages.

UBS Securities has submitted an application to the regulator seeking approval for UBS to raise its stake in the joint venture to 51 percent, UBS said in a statement Thursday. It currently has about a 25 percent stake in the joint venture.

Animation industry gets tax policy support

THE Ministry of Finance said Wednesday that it will maintain the existing value-added tax policy stance for the animation industry in order to promote its continued development.

The ministry said in a statement that it will set a value-added tax rate of 16 percent for firms selling self-developed animation software from May 1, 2018 to Dec. 31, 2020, compared with 17 percent set from Jan. 1 to April 30 this year.

Tesla to unveil China plant location

TESLA Inc. plans to announce the location of a plant in China as early as in the third quarter as the U.S. company moves to produce batteries and cars like the Model Y in the world’s biggest electric vehicle market.

“Maybe next quarter, but not later than the fourth quarter for Model Y,” CEO Elon Musk said Wednesday. “We also expect to announce the location of a Tesla gigafactory in China soon.” Tesla is forging ahead with plans to build a manufacturing plant in China following the government’s announcement last month that it will allow foreign new energy vehicle makers to fully own auto factories as soon as this year.