Four foreign banks will provide retail yuan services to people across China from April 23. HSBC, Citigroup, Standard Chartered Bank and the Bank of East Asia passed the regulator's audit on April 19 and now have unlimited access to the country's 2-trillion U.S. dollars domestic household savings. The banks, however, have said they mainly intend to promote wealth management services and target China's wealthier customers. Domestic lenders, trying to fend off competition in the retail market, are also stepping up their efforts to court higher-end customers with services such as private banking. (Source: China Daily)


CITIGROUP Inc. intends to accelerate its expansion in China by this year roughly doubling its number of branches in the world's fourth-biggest economy, Chief Executive Charles Prince said. Citigroup already has 16 branches in China and hopes to increase that to more than 30 by the end of 2007, Mr. Prince said. 'China is extremely important to us. . . . We'll be here often,' he told reporters while in Beijing during an Asian trip that also includes India and South Korea. (Source: wsj.chinese.com)


Speaking to local media on 8th, Apr, Swiss Economics Minister Doris Leuthard revealed that she would be heading up a large business delegation to China in June, seeking to clinch talks on a free trade agreement between China and the European banking hub, Swiss Radio International (SRI) reported. This move comes as China presses ahead with FTA talks with several European countries, including Iceland and Norway. Both of these form the four-state European Free Trade Association (Efta), along with Switzerland and Liechtenstein, a grouping of European states that are not members of the European Union. (Source: Xinhua News)


China's State Administration of Taxation said that as of last week only 1.37 million people had filed tax returns out of the estimated 7 million high-income earners who ought to have filed by the deadline of 31st March and out of an estimated total of 75 million taxpayers. Last November, China's tax authorities had announced that high earners, including foreigners, who earn more than 120,000 yuan (US$15,000) per year, will be required to report their income directly to the tax authorities as the government sent a strong signal that tax avoidance will no longer be tolerated. (Source: Tax-News.com)


Singapore-based DBS Group is to tap into China's wealth management market after local incorporation. "With the setting up of the local subsidiary, and in time to come, we hope to provide the full suite of wealth management services to our customers in Hong Kong and Singapore, and to local and foreign residents on the mainland," said a DBS spokeswoman. DBS and seven other financial institutions, including the Hong Kong-based Hang Seng Bank and Singapore's Overseas Chinese Banking Corp, are waiting for approval from the Chinese banking authorities for local incorporation. (Source: Wealthbriefing.com)


The Liechtenstein government has launched a consultation on planned revisions to the Liechtenstein foundation law. Liechtenstein has been planning a revision of the foundation law since 2001, and the government made a commitment to this in its Program for 2005 – 2009, which explicitly lists foundation law reform as one of the focuses of a modern justice policy. The consultation period ends on 8 June 2007. (Source: LawAndTax-news)


Sweden's centre-right coalition government has pledged to continue its reform of the tax and welfare system by proposing to abolish the unpopular property tax, replacing it with a “communal tax.” The new proposals come after the announcement to abolish the country’s wealth tax. Under the current property tax system, homeowners must pay 1 per cent of the taxable value of their dwelling if they live in a house, and 0.5 per cent if they live in an apartment. Agreement has been reached on a new flat rate system, known as the “communal tax” which would commence next year and would lead to a charge of about SKR4,500 (EUR485). Higher capital gains tax would be payable on sale. (Source: Wealthbriefing.com)


The British Virgin Islands Financial Services Commission (FSC) has said that its recent acceptance as a member of the International Organization of Securities Commissions (IOSCO) reflects the jurisdiction's robust international cooperation framework, and its long-standing commitment to comply fully with international standards. At its Annual Conference in Mumbai, India from 9-12 April 2007, IOSCO's Executive Committee recommended the BVI’s membership, after it concluded that the BVI had complied with all of the standards and requirements outlined in the IOSCO Multilateral Memorandum of Understanding concerning Consultation and Cooperation and the Exchange of Information (IOSCO MMOU). (Source: Tax-News.com)


Japan's Prime Minister Shinzo Abe on 17th, Apr asked Japan’s financial regulator to draw up measures to relax the rules that separate banking and broking businesses. The move is expected to boost foreign investment in the country’s financial sector and ease business for its major banks, which at present can own securities businesses only as independent subsidiaries and face limits on how they operate. It is part of a drive by Mr Abe’s government to raise Tokyo’s competitiveness as a global financial centre. (Source: The Financial Times)


The CBRC (China Banking Regulatory Commission) and the State Administration of Foreign Exchange (SAFE) recently jointly issued Provisional Administrative Rules on Overseas Wealth Management Business by Trust Companies (the Rules), which comes into effect as of 10th, Apr. As policy guidance, the Rules set high requirements for trust companies to engage in overseas wealth management business, particularly with respect to risk mitigation. The purpose of promulgating the Rules is to allow trust companies to cautiously conduct overseas wealth management business with sound risk control and give a full play to some trust companies that possess high creditworthiness and financial strength so as to help advance the overall competitiveness of trust industry as a whole. (Source: www.cbrc.gov.cn)


US Trade Representative Susan Schwab and India’s Minister of Commerce and Industry Kamal Nath met on 13th, Apr to discuss improving the bilateral trade relationship between the two countries. During the strategic trade talks at the sixth Ministerial-level meeting of the US-India Trade Policy Forum (TPF), Ambassador Schwab and Minister Nath focused on a number of initiatives to strengthen bilateral trade ties, and held in-depth trade policy discussions on tariff and non-tariff barriers, agriculture, investment, services, and intellectual property rights. The US-India Trade Policy Forum was launched during the visit of Indian Prime Minister Manmohan Singh to Washington, DC, in July 2005. (Source: LawAndTax-News.com)


The Chinese government has reportedly issued a circular which describes how locally-incorporated foreign banks will in future be exempt from a number of taxes under new banking rules. According to the Xinhua state news agency, the circular, issued jointly by the Ministry of Finance and State Administration of Taxation, revealed that the taxes covered include business tax, value-added tax, corporate income tax, stamp tax, and real estate transaction tax. (Source: Tax-News.com)


The Hong Kong Securities and Futures Commission (SFC) has signed an agreement with the China Banking Regulatory Commission (CBRC) to share information on firms providing services to Mainland commercial banks conducting overseas wealth management business. The Mou was signed on April 10 in Hong Kong by Eddy Fong, Chairman of the SFC and Liu Mingkang, Chairman of the CBRC and has taken immediate effect. (Source: LawAndTax-news)


The Cayman Islands Monetary Authority (CIMA), the country's financial services regulator, has announced the implementation of an electronic reporting system for all funds licensed, registered and administered in the jurisdiction. Following successful industry testing, CIMA released on its website the electronic Fund Annual Return (FAR) form and has opened the internet portal through which funds' local auditors will submit the required returns. Related guidance notes have also been released. The submission of these returns is a requirement for all funds regulated under Cayman's Mutual Funds Law. (Source: LawAndTax-news)


The United States and the Republic of Korea on April 1 successfully concluded a free trade agreement that will see tariffs on the import of virtually all industrial and agricultural goods phased out. The KORUS FTA will create highly valuable new export opportunities for American farmers and ranchers by eliminating and phasing out tariffs and quotas on a broad range of products. Under the agreement, over $1 billion worth of US farm exports to Korea will become duty-free immediately. Most remaining tariffs and quotas will be phased out over the first ten years the agreement is in force. (Source: Tax-News)


The Czech government has announced a draft of major tax reform plans, which include a flat tax on personal income, a significant reduction in tax on corporate income, and changes to the value-added tax regime. Under the proposals announced by Finance Minister Miroslav Kalousek, if approved Czech taxpayers will pay a 15% flat tax on their personal income, while companies will see their income tax rate drop to 19% from the current 24% by 2010. (Source: Tax-News)


Hong Kong's Secretary for Financial Services & the Treasury, Frederick Ma on 19th, April commenced a visit to New York and Toronto to promote Hong Kong as an international financial centre and gateway to China. He will meet senior officials and the financial services and business sectors. He will also speak at a luncheon and at business forums. Mr. Ma's programme in New York includes an address on opportunities in China. US Secretary of the Treasury Henry Paulson will also be a keynote speaker. In Toronto, Mr Ma will meet the Federal and Ontario Ministers of Finance, Jim Flaherty and Greg Sorbara. He will also attend the Canada-Hong Kong Business Forum, and will visit the Toronto Stock Exchange to open the stock market. (Source: LawAndTax-News)


The newly re-named UK Intellectual Property Office has announced the launch of its China Roadmap. The new UK-IPO guide, entitled 'China, an Enforcement Roadmap', offers guidance to the Chinese Intellectual Property protection and enforcement system. Aimed at businesses currently in or intending to operate in China, the guide offers practical and effective help on how to protect and enforce intellectual property rights, using the current Chinese system. (Source: LawAndTax-News.com)


Bank of China, the nation's second-biggest lender, has announced plans to invest US$1.3 billion to beef up services and internal controls. This investment would be made "in the near term," according to bank vice-president Zhu Min, the South China Morning Post reported. Bank of China's investment in internal controls and services was unveiled as the banking regulator reminded local lenders to be careful on loans. Bank of China and partner Temasek Holdings have begun making loans to small- and medium-sized enterprises at trial locations in the provinces of Jiangsu, Zhejiang and Fujian. The trials should be completed in September. No details about the size of the project were provided. (Source: chinaeconomicreview)


The fate of the $4bn fortune of Nina Wang-Asia’s richest woman appears set to descend into a battle between her family and her feng shui master after the emergence of conflicting wills. Ms Wang was the chairman of Chinachem, one of Hong Kong’s biggest property groups, and was renowned for her penchant for pigtails and miniskirts. She died on April 3. Her family has claimed that – according to a 2002 will – she and her late husband, Teddy Wang, wanted their fortune given to charity after their deaths. But the lawyer of Chan Chun-chuen, her feng shui master and friend, claimed on 20th, Apr that Ms Wang had written a new will in 2006 in which she made Mr Chan, 48, sole beneficiary. (Source: FT.com)


Two revenue bills were gazetted April 20, and will be tabled at the Legislative Council on May 2, seeking to put into effect tax proposals announced in the 2007-08 Budget. The Financial Services & the Treasury Bureau revealed that the Revenue Bill 2007 comprises two Budget proposals which came into effect February 28, under the Public Revenue Protection (Revenue) Order 2007. The proposals will: reduce the stamp duty rate on transactions of properties valued between HK$1 million and HK$2 million from 0.75% to a fixed amount of HK$100; and reduce the duty on wine from the existing rate of 80% to 40%, and that on other beverages with an alcoholic strength of no more than 30% from 40% to 20%. (Source: Tax-News.com)


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. Although China could overtake Japan as a market for wealth management within five years, cracking the wealth management market in Japan is also a key focus for the bank this year as it doesn't restrict foreign banks from offering wealth management services, said Mr. Tapner. (Source: Wealthbriefing.com)


The Turkish finance ministry has announced that it is to launch an investigation into the use of offshore financial centres by its citizens. In a controversial move, it has decided to base its inquiry on a blacklist published by the Organisation for Economic Cooperation and Development in 2000 to identify what it called tax havens. Money transfers, specifically, from Turkey to countries which have zero or very low tax rates will be under close monitoring by the ministry. Countries to be regarded as destinations for Turkish funds will be chosen from among the countries with which Turkey has no agreement to revoke double taxation. (Source: Wealthbriefing)


Shanghai has overtaken Hong Kong as the world's busiest port behind Singapore, the South China Morning Post reported. First quarter throughput figures showed that Shanghai had posted a 28% year-on-year gain as it handled a total of 5.88 million 20-foot equivalent units (teu) to Hong Kong's 5.5 million teu, a rise of just 2.3%. Shenzhen throughput was up 8.2% to 4.26 million teu. According to data released by the Hong Kong Port Development Council, the port saw a 14.4% decline in throughput in March, following increases of 5.4% and 14.2% in January and February, respectively. Hong Kong is increasingly losing business to Shenzhen as industrial plants move from the former British colony to the Pearl River Delta area. Meanwhile, Shanghai Port is seeing bumper growth thanks to its location at the mouth of the Yangtze River Delta. (Source: chinaeconomicreview)


China plans to allow domestic trust firms to take part in the qualified domestic institutional investor (QDII) scheme as part of efforts to attract funds to invest in overseas markets. Trust firms on the mainland would be allowed to apply for QDII quotas, according to the China Banking Regulatory Commission and the State Administration of Foreign Exchange, the South China Morning Post reported. The People's Bank of China issued rules on QDII in April last year, allowing commercial banks to convert renminbi for overseas investments, but with the booming stock markets and the yuan's rising value, QDII products have not been popular. The government also announced recently that the QDII scope would be further expanded this year to include investments in more types of products. (Source: chinaeconomicreview)