Banking
Xinjiang exempts tax to attract investment
Taxation authorities in China’s far western Xinjiang unveiled a new rule Saturday exempting enterprise income tax to attract investment to the border cities of Kashgar and Horgos.
URUMQI – Taxation authorities in China’s far western Xinjiang unveiled a new rule Saturday exempting enterprise income tax to attract investment to the border cities of Kashgar and Horgos.
The new businesses are exempt from the enterprise income tax for five years, the regional taxation bureau said a statement, citing a notice from the Ministry of Finance and State Administration of Taxation.
The tax-free period lasts from 2010 to 2020, according to the statement.
For those who have paid the tax over the past two years, they can get refunds, it added.
The State Council, China’s Cabinet, announced in October a plan to set up economic zones in Kashgar and Horgos. The move is expected to bring prosperity to the relatively poor Xinjiang and shift the country’s opening-up strategy from focusing on eastern coastal regions to a more balanced approach.
Kashgar, an ancient Silk Road town that borders Pakistan through the plateau of Pamirs, will become a regional logistics center, a financial and trading hub, and a key processing center for internationally traded goods. Horgos, a China-Kazakhstan border town, will focus on chemicals, farm products, machinery, pharmaceuticals, and renewable energy, according to the plan.
The central government has drawn up ten favorable policies to help establish the two economic zones, ranging from tax exemptions, subsidized electricity and transportation, low-interest loans for infrastructure to development of better rail and air links with neighboring countries.
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Xinjiang exempts tax to attract investment
Banking
HSBC to Scale Back China Credit Card Operations Amid Expansion Challenges – Reuters
HSBC is withdrawing from its China credit card business due to difficulties in expanding, marking a strategic retreat in a challenging market environment.
HSBC’s Strategy Shift in China
HSBC is scaling back its credit card operations in China, highlighting challenges the bank has faced in expanding its customer base. The competitive landscape, combined with changing consumer preferences, has made it increasingly difficult for the bank to maintain its position in this lucrative market.
Market Challenges Ahead
Recent reports indicate that HSBC is reassessing its strategy, focusing resources on other areas where it sees stronger growth potential. The decision to pull back reflects the broader difficulties foreign banks encounter when trying to penetrate China’s financial services sector.
Future Focus
As HSBC pivots away from its credit card business in China, it aims to concentrate on digital banking and wealth management services. This strategic shift underscores the bank’s commitment to adapting to the evolving landscape of financial services while ensuring long-term sustainability in the region.
Source : Exclusive: HSBC pulling back from China credit card business after struggling to expand – Reuters
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