Beijing has suspended the collection of corporate taxes from Chinese mutual funds to help boost the country’s falling stock prices, the Financial Times reported, citing state media. The move is a temporary measure, and there is no word yet on how long the suspension will last. The exemption applies to all income from investment funds from securities markets, including stock and bond trading, and interest or dividends from stock or bond investments. Mutual funds make up China’s biggest group of institutional investors, with 350 funds controlling US$450 billion in assets. The mainland market has dropped almost 40% since its peak last October.
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