CHINA will extend the preferential tax policy for overseas investors investing in the domestic bond market, as part of its efforts to promote opening-up and attract foreign investment, the State Council’s executive meeting chaired by Premier Li Keqiang decided Wednesday.

The meeting noted that China will continue to expand opening-up, leverage the strengths of its big domestic market and foster a more enabling business environment. More will be done to attract foreign investment and encourage more foreign investors to participate in China’s domestic development through the bond market.

“We will make greater efforts to attract foreign investment, and welcome overseas investors to our bond market on the mainland,” Li said.

The meeting decided that the policy to exempt overseas institutional investors from corporate income tax and value-added tax on their bond interest gains arising from investment in the mainland bond market will be extended till the end of the 14th Five-Year Plan period (2021-2025), i.e. Dec. 31, 2025.

Competent departments shall go through the record-filing process with the Standing Committee of the National People’s Congress in accordance with laws and regulations.

(Xinhua)