Classic Hidden Form Hidden Danger Or Become "New Normal" In October

From the technical perspective, the Shanghai stock index has received different lines for a long time.

Especially today, the Shanghai and Shenzhen two cities have received a more standard "hanging neck" Yin line, especially in need of vigilance.

If from a technical analysis point of view, after the stock price has gone up for a long time, the "hang neck" line appears on the K-line chart, or that the market is repeated.

Of course, K-line analysis is only a summary of past laws, and investors need to look forward to judge the general trend.

As we all know, the impending change in the trend of A shares is undoubtedly the fourth plenary session with Shanghai and Hong Kong.

From the perspective of the Fourth Plenary Session of the fourth plenary session, although the market generally believes that there will be breakthroughs in its reform, it will be hard to say whether it will break through in that respect.

There is a possibility that some of the related shares have fled because of disagreement.

At the Shanghai and Hong Kong level, it is hard to conclude that foreign capital will buy in large quantities after opening a gate.

With these two expectations gradually materialized, the market has earlier reached a certain level of callback.

In addition to these two points

Outside,

The disturbance, the weakness of the external market and the pressure of market expansion are all the reasons for the air side to create a concussion.

In summary,

It is possible to enter a pattern of concussion.

Investors should move from optimism to appropriate caution.

Especially in today's stock market loose chips continue to increase, stocks split or will become increasingly fierce.

When investors have a big increase in stocks, they still need to start from the current steady growth and substantive reform, looking for a relatively low share price and the most likely theme of policy breakthroughs.

The concept of reform and pformation, such as oil reform, railway reform, real estate, industrial capital operation (especially reorganization), which we have always emphasized, is an important direction for investors to dig out.

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According to Reuters sources, a number of key regulatory departments involved in the establishment of Shanghai and Hong Kong have indicated to market participants that they expect capital gains tax from Hong Kong and Hong Kong.

But sources say it is not clear whether the final decision has been made.

Shanghai and Hong Kong through mechanism is expected to start in October 27th.

According to the existing regulations, Hongkong does not impose capital gains tax.

But for foreign institutional investors trading Chinese stocks, China has imposed a 10% capital gains tax, but so far the Chinese government has been temporarily exempt from it.

"We get a lot of oral guarantees without tax, but they are not formally determined," an industry executive attending a high-level meeting with the China Securities Regulatory Commission said, "uncertainty is worrying.

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According to people familiar with the matter, CSRC officials privately stated at a meeting of investors in Beijing two weeks ago and a similar meeting in Shenzhen last month that China would not impose capital gains tax on mainland stocks through Hong Kong and Shanghai.

Another insider said the Hongkong securities and Futures Commission said at another meeting that China's capital gains tax is not applicable to the Shanghai Hong Kong through mechanism.

According to people familiar with the matter, the final decision is not only made by the China Securities Regulatory Commission, but also involves several other government agencies.

It is not clear at the moment what the final decision procedure is.

One insider said the CSRC was worried that if capital gains tax was imposed, it would reduce the scale of potential pactions between Shanghai and Hong Kong.

The SFC and the State Administration of foreign exchange have different opinions, and the safe tends to levy taxes.

Another insider said the State Administration of taxation was also involved in the discussions. It is not clear what the IRS's position is.

Chinese government officials did not respond to requests for comment.

Hongkong regulators did not comment.

As the matter has not yet been disclosed, people familiar with the matter requested anonymity.

At present, the tax issue of A share trading is the focus of overseas institutional investors.

For example, through Shanghai and Hong Kong through investment related A shares, in the case of listed companies dividends and stock dividends, how to levy dividend tax; sell A shares, whether it is exempt from capital gains tax and other tax details.

Since the launch of qualified foreign institutional investors (QFII) 11 years ago and the introduction of RMB qualified foreign institutional investors (RQFII) three years ago, capital gains tax has been the sword of Damour, who is hanging on the head of foreign institutions.

The reason for its long-standing pending is the consideration of balancing the interests of different types of investors, such as the difference between domestic and overseas investors. On the other hand, there are different arrangements for tax pactions similar to stock pactions in the bilateral tax treaties signed between China and overseas countries and regions. In some cases, China has no direct taxation power.

Since 2003, regulators have not explicitly stated whether capital gains from overseas institutions such as QFII are taxed.

The uncertainty of the tax system has always been one of the concerns of QFII investors. It will also be one of the major concerns for overseas investors to enter the market under the Shanghai and Hong Kong linkage mechanism. At present, quite a number of QFII institutions and RQFII managers have withheld the capital gains tax according to the 10% default ratio of the industry.