SHANGHAI, April 12 (Reuters) – China’s finance ministry published preferential tax rules on Friday designed to support domestic floatation of overseas-listed Chinese tech firms.
The Ministry of Finance announced tax breaks for both retail and institutional investors involving future trades in China depositary receipts (CDRs), according to a statement on the ministry’s website.
In June 2018, China published rules allowing foreign-listed Chinese companies to issue CDRs in China, modeled on the popular ADRs used in the United States.
But so far, no company has issued CDRs, the closest one being smartphone maker Xiaomi Corp, which in June postponed a planned listing on the domestic market though it went ahead with an initial public offering in Hong Kong as planned.
According to the finance ministry, individual