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China exempts taxes on Shanghai-HK share link

China will temporarily exempt taxes on profits made from a landmark scheme linking Shanghai and Hong Kong stock exchanges, the finance ministry said on Friday.

The Shanghai-Hong Kong stock connect, to be launched on Nov. 17, will allow international investors to trade Shanghai-listed shares via the Hong Kong stock exchange and mainland investors to dabble in Hong Kong shares via the Shanghai Stock Exchange.

Read MoreHow to play the Shanghai-HK stock connect

Floor traders monitor share prices during afternoon trading at the Hong Kong Stock Exchange.
Bobby Yip | Reuters
Floor traders monitor share prices during afternoon trading at the Hong Kong Stock Exchange.

The ministry said in a statement that business tax on Qualified Foreign Institutional Investor (QFII) and Renminbi Qualified Foreign Institutional Investor (RQFII) schemes, the two main avenues currently available for foreigners to invest in China, will also be temporarily exempted.