China

事关个人所得税！财政部、税务总局、证监会等三部门发布

STCN | Local Language | News | Jan. 23, 2026 | Regulation

On January 21, 2026, the Ministry of Finance, State Taxation Administration, and China Securities Regulatory Commission jointly announced the continuation of tax policies for the pilot domestic issuance of depositary receipts (CDRs) by innovative enterprises. From January 1, 2026, to December 31, 2027, individual investors will be temporarily exempt from personal income tax on price-differential gains from transferring CDRs of innovative enterprises.

During the same period, a differentiated personal income tax policy will apply to dividend income received by individual investors holding CDRs. Tax withholding and payment responsibilities fall on the domestic depositary institution, which must also file detailed reports with the tax authorities. Foreign tax credits may be granted for dividends already taxed abroad, according to relevant laws and bilateral tax treaties.

For corporate investors, price-differential gains and dividend income related to CDRs of innovative enterprises will follow existing enterprise income tax policies for share transfers and dividends. Public securities investment funds are temporarily exempt from enterprise income tax on these gains and dividends. Qualified foreign institutional investors (QFII) and renminbi qualified foreign institutional investors (RQFII) will treat such gains and dividends as income related to the transfer or holding of the underlying shares of the CDRs for enterprise income tax purposes.

The announcement defines "CDR of innovative enterprises" as securities issued domestically by a depositary based on overseas shares, meeting the pilot enterprise criteria set by the State Council and CSRC guidelines. These CDRs represent rights in the underlying overseas securities.

高盛维持2026慢牛预判：反内卷、出海、AI板块将撑起A股企业14%盈利增长

Sina Finance | Local Language | News | Jan. 23, 2026 | UndeterminedOperating Results

Goldman Sachs projects China’s real GDP growth at 4.8% in 2026, with a “low first, high later” pattern where first-half growth ranges between 4.5% and 5%, and second-half growth nears 5%. Exports are expected to grow steadily, supported by global economic demand, competitive Chinese products in emerging markets, and China’s control of key minerals like rare earths. Nominal export growth in US dollars is forecasted at 5.6%, with export volumes rising 5%–6% annually.

Consumption growth is expected to be driven by the service sector, which is more labor-intensive and can bolster employment and incomes. Household consumption remains weak but is supported by increased government consumption following a debt-conversion plan and ongoing trade-in policies. Investment is anticipated to improve over 2025, driven by previously delayed projects, new financial instruments, and major initiatives in technology, AI, and power grids tied to the 15th Five-Year Plan.

Goldman Sachs maintains a “slow bull” outlook for China’s A-share market in 2026, supported primarily by a sharp rise in corporate earnings, projected to grow 14% compared to 4% in 2025. Key drivers include AI sector development shifting toward applications and monetization, overseas revenue growth from Chinese companies reaching 20% by 2030, and the “anti-involution” policy boosting margins in upstream and manufacturing sectors.

Capital inflows are expected to be robust, with over 3 trillion yuan of new domestic capital entering the stock market, and significant southbound and northbound foreign investments setting new records. Overseas investor interest is increasing but has not yet reached scale, highlighting the value of Chinese assets for global portfolio diversification.

Sector preferences favor technology hardware (including smartphones, AI servers, semiconductors), internet, insurance, and materials sectors due to their alignment with AI development, technological self-reliance, and “anti-involution” policies. Thematic focuses include AI, going-global expansion, private-sector leadership, mid-cap policy beneficiaries, and companies with high shareholder returns, as China’s listed firms are expected to distribute about 4 trillion yuan in cash returns in 2026.

In commodity strategy, Goldman Sachs remains positive on precious metals, especially gold, for its safe-haven value amid global uncertainties. Technology sector valuations are judged reasonable and supported by earnings growth, with no bubble risk detected. Investors are advised to center portfolios around AI, going-global, and “anti-involution” themes, diversify geographically, and leverage structural opportunities backed by government policy.

China Daily | English | News | Jan. 23, 2026 | UndeterminedTech Development/Adoption

Chinese biometric technology firm Saint Deem has launched its first dedicated vein-recognition manufacturing line in Huainan, Anhui province. The production line, covering more than 10,000 square meters, is designed to produce up to 2 million vein-recognition modules and authentication devices annually. This marks a step toward large-scale commercialization of vein recognition technology, targeting applications across consumer electronics, payments, vehicles, and smart infrastructure.

Saint Deem's new factory is the first specialized manufacturing line in China focused solely on vein-recognition products, addressing a gap in the country's biometric supply chain. Vein recognition identifies individuals by analyzing patterns of veins beneath the skin, offering a more secure alternative to passwords, fingerprints, and facial recognition, which are increasingly vulnerable to spoofing and AI-generated forgeries. Co-CEO Qian Haomin highlighted the shift from an R&D-driven model to one combining R&D and manufacturing, aiming to establish vein recognition as a trusted, universal key connecting people securely to both digital and physical worlds.

The technology has already been deployed in applications such as palm-vein payment systems, smart locks, public transport, and high-security environments. For example, Chengde Public Transport Group in Hebei province has implemented palm-vein payments to reduce reliance on cards and QR codes. Industry experts noted the potential for consumer markets to drive growth, given the relatively low penetration of smart locks in China despite significant sales.

Experts emphasized the importance of unified technical and security standards to ensure trust and prevent industry fragmentation as vein recognition moves toward mass adoption. Academician Zheng Zhiming and IT standardization expert Zheng Yinfei stressed that vein recognition’s higher-dimensional data provides fundamentally stronger security against evolving digital threats like AI-generated deepfakes, and that establishing evaluation and security benchmarks is critical to protect users and unlock the technology’s full value.