Financial News

Investment basics Currency: Renminbi (RMB) or Yuan (CNY) Foreign exchange control: The government maintains strict exchange controls, although the general trend has been toward a gradual liberalization of China’s foreign exchange markets and specific controls over companies and individuals. Accounting principles/financial statements: Accounting standards similar to IFRS are mandatory for publicly held companies listed in China and certain other companies (e.g., banks) and have been widely applied to large and medium-sized enterprises established in China. Principal business entities: China maintains a matrix of laws and regulations relating to business entities. The main entities are pure domestic enterprises, wholly foreign-owned enterprises, equity joint ventures, cooperative joint ventures, holding companies, domestic partnerships, foreign-invested partnerships, trusts, branches, and representative offices. Branches of foreign companies are permitted for a limited number of industri...

Investment basics Currency – Hong Kong Dollar (HKD) Foreign exchange control – There are no foreign exchange controls. Accounting principles/financial statements – Hong Kong Financial Reporting Standards apply. Hong Kong-incorporated companies must prepare annual audited financial statements. Public companies must file annual financial statements with the Companies Registry. Private companies are not required to file annual financial statements with the Companies Registry, but must maintain proper books of account. Audited financial statements must be submitted to the Inland Revenue Department (IRD) with the annual profits tax return filing (except for small corporations). Principal business entities – These are the public and private limited liability company, partnership, sole proprietorship, and branch or representative office of a foreign corporation. Corporate taxation Rates Corporate income tax rate 8.25%/16.5% Branch tax rate 8.25%/16.5% Capital gains tax rate 0% Residence – Hon...