On 16th, Mar, China's legislature passed a controversial law designed to protect private property rights in what legal experts called a milestone on the path toward a market economy. The legislation stopped short of abrogating the principle that all land belongs to the state, a fundamental part of the communist system put in place after Mao Zedong's rise to power in 1949. But it broke ground by establishing new protections for private homes and businesses and for farmers with long-term leases on their fields. (Source: Washington Post Foreign Service)


The mainland's asset management market is set to grow strongly over the next decade as billions of dollars in savings are invested and regulators allow access to a wider range of products, says McKinsey. The consultancy said the mainland market would grow 25 per cent annually to US$1.4 trillion by 2016 from US$156 billion now. The industry has grown 37 per cent annually from US$32 billion in 2001. (Source: hk.news.yahoo.com)


Geneva-headquartered EFG International, the fifth largest bank in Switzerland, showed strong earnings growth, increasing its net profit for 2006 to SFr230 million ($188 million) up 90 per cent compared to SFr120.9 million for 2005. Total clients’ assets under management including announced acquisitions were SFr73.6 billion, up 56 per cent from SFr47.3 billion at the end of 2005. (Source: wealthbriefing)


Despite leaving headline salaries and profits tax rates on hold, Financial Secretary Henry Tang announced that the 2007/8 budget would nevertheless bring about HK$20 billion in tax concessions as a result of changes to marginal tax rates and bands, and a number of other measures. (Source: tax-news)


HM Revenue and Customs has confirmed that changes will be introduced in Finance Bill 2007 which will improve the tax treatment of certain investment trust companies (ITCs) investing in offshore funds. (Source: tax-news)


Australian Minister for Revenue and Assistant Treasurer, Peter Dutton, has announced the signing of a Tax Information Exchange Agreement (TIEA) between Australia and the Netherlands Antilles, which aims to complement Canberra's crackdown on offshore tax evasion by supporting initiatives such as Operation Wickenby. (Source: lawandtax-news)


Chinese Premier Wen Jiabao stated that co-operation and exchange between mainland China and Hong Kong in the economic, trade, science and education sectors will be strengthened. Delivering his Government work report at the 10th National People's Congress annual session in Beijing, Wen said the Central Government will work closely with Hong Kong and Macau to maintain long-term prosperity and stability. (Source: Tax-News.com)


The latest statistics provided on Jersey’s Finance Industry show that the Net Asset Value of funds under administration has reached nearly GBP180 billion as at 31 December 2006, whilst bank deposits have reached an all time high of nearly GBP190 billion. (Source: tax-news)


China Merchants Bank, China Construction Bank Corp and China Minsheng Banking Corp are looking to buy overseas lenders, according to separate statements from their chairmen, as they join their counterparts in a push for new markets. (Source:SCMP)


The China Banking Regulatory Commission has issued new rules to regulate internal finance firms by large corporations which also further open them for foreign investment.
The commission said the new rules were aimed at improving the returns of conglomerates in the mainland while better regulating ownership of non-banking financial organizations. (Source: SCMP)


Hong Kong's wealth management industry has a favorable and promising outlook based on its own advantages and the rapid economic development of Chinese mainland, said Hong Kong's Financial Secretary Henry Tang. He said Hong Kong can develop into a leading asset management center based on its rule of law, a robust and effective regulatory regime, absence of foreign exchange control, the world's freest economy, and one of the world's most efficient tax systems. (Source: China trade news)


The signing of a Memorandum of Understanding between the Dubai Financial Services Authority (DFSA) and the New Zealand Securities Commission (NZSC) has put in place arrangements for cooperation and information sharing between the two regulators, says DFSA chief David Knott. (Source: tax-news)


Allahabad Bank, India’s oldest joint stock bank has chosen Hong Kong for its first overseas branch. The leading public sector bank, which is currently 55.23% held by the Indian government, has opened a branch at the Lippo Centre to serve retail and corporate clients. As part of its China expansion plans, the bank also opened a representative office in Shenzhen, from which it will explore opportunities in the dynamic southern China region. Established on 24 April 1865, Allahabad Bank currently has assets of HK$118.04 billion (US$15.1 billion), and deposits of HK$102.77 billion. (Source: Investors Offshore)


A proposal to unify the rate of corporate tax paid by domestic and foreign-owned companies operating in China took a large step towards becoming a reality on 16th, Mar when lawmakers voted to approve the measure.The proposed law would unify corporate tax at a rate of 25%. While this would mean a cut in tax for domestic firms, foreign-backed companies would likely see their tax bill increase. (Source: Tax-News.com)


China’s revamped postal ­savings system on Tuesday opened for business as the country’s fifth biggest bank, pledging to improve its reach in rural areas where financial services and capital are scarce.The launch of the China Postal Savings Bank ­followed years of delay and dispute over how to reform the sprawling postal bureau, which at the end of last year held Rmb1,600bn (£106bn, $207bn, €156bn) in deposits through more than 36,000 branches. In an inauguration ad­dress, Liu Andong, bank chair­man, said it would “enhance the development” of China’s countryside by making particular effort to offer credit to rural households and companies. (Source: FT.com)


In his budget speech, Chancellor of the Exchequer Gordon Brown surprised many by announcing a 2% reduction in the rate of corporation tax and a 2% cut in the basic rate of income tax, representing the first major cut in these taxes in many years. (Source: Tax-news)


The US has withdrawn its opposition to China joining the Inter-American Development Bank, allowing formal talks over its membership of the region’s biggest development institution to begin. Membership would allow China access to contracts on IADB projects in a region where its economic influence has been growing strongly in recent years. Trade has increased more than fivefold since 1999, partly as a result of a big increase in Chinese demand for raw materials such as soya, iron ore and copper. (Source: FT.com)


Hong Kong is still more competitive than Shanghai but the gap is narrowing, according to a survey of business executives in the two cities. Unlike Shanghai, which enjoys clear supremacy in the Yangtze River Delta, Hong Kong's core role in the Pearl River Delta is less certain, with its neighbouring cities relying less on its services because of the rapid rise of Shenzhen and Guangzhou, researchers say. Study leader Tuan Chyau urged Hong Kong to make cross-border journeys faster and cheaper and speed up major infrastructure projects such as the Hong Kong-Zhuhai-Macau bridge. (Source: www.hkihrm.org)


UBS Asia chairman and chief executive officer, Rory Tapner, wants to acquire a banking licence in India and to beef up the bank's wealth management business in the region, the focus of which will be Singapore Japan and Hong Kong, according to an interview with the Wall Street Journal. An Indian banking license would allow UBS to compete with the likes of Citigroup and Deutsche Bank and to offer wealth management services in the country. (Source: wealthbriefing)


A Zhejiang-based footwear manufacturer has announced the creation of a trade and investment zone in Russian Far East, the first such move by a privately-owned Chinese company. The zone, with potential total investment reaching 2 billion yuan and located in Ussuriysk, an industrial city, will be established by Kangnai Group. Construction of the 2-square-km zone began last August and should be completed by 2010, according to Zhou Jinmiao, a senior official of Kangnai, adding that the zone would invite all companies aiming to do business in Russia. The move will open the door to more Chinese industries aiming to enter the Russian market, leading to strengthened trade and investment ties between the two countries. (Source: Beijingreview.com)


US Trade Representative Susan C. Schwab and Vietnam’s Deputy Prime Minister and Foreign Minister Pham Gia Khiem met on 16th, Mar, when they announced the launch of negotiations to conclude a Trade and Investment Framework Agreement (TIFA), which will serve as a platform on which the two countries will work to further strengthen their trade and investment ties. The TIFA will establish a formal dialogue under which the two countries intend to discuss new initiatives to deepen their trade and investment ties. It will also provide a forum for monitoring Vietnam’s implementation of its WTO and Bilateral Trade Agreement (BTA) commitments. (Source: Tax-news)


China may become the world's second-largest consumer market by 2015, according to a report released during the weekend. China's booming economy may boost its share of world spending from 5.4% last year to 14.1% by 2015, AFP reported, quoting a reported from Credit Suisse. This rate of growth would send Chinese consumer spending past Japan, Germany, Britain and Italy and put it in second place behind the US, which last year accounted for 42% of the world's total. China's rise, however, will eat away at the percentage lead of the US, which is expected to go down to 37.7% by 2015. At the current rate of growth, China's consumption will be behind the US and Japan by 2010, the bank forecasted. Ironically, despite economic growth of 10.7% in China last year, spending on many consumer items actually declined in 2007, the bank reported. (Source: chinaeconomicreview)


Deutsche Bank, Germany's biggest bank, is to take advantage of Chinese liberalisation that will allow foreign commercial banks to expand product offerings and branch networks on the mainland. Deutsche Bank is to apply to incorporate its Chinese subsidiary, and last week signalled its intention to do so in a letter to regulators. (Source: FT.com)


The Russian government is considering a 4% cut in corporate profit tax as an alternative to the long-mooted reduction in value added tax, Deputy Finance Minister Sergei Shatalov stated last week. (Source: tax-news)


The United Kingdom government has announced that it plans to introduce legislation in the 2007 Finance Bill to tackle avoidance of corporation tax through use of certain financial instruments. (Source: lawandtax-news)