Global Gains, Local Taxes: China Tightens Rules on Overseas Stock Profits
Warning! GuruFocus has detected 7 Warning Signs with TSN.
What's triggered the clampdown? For starters, China needs cash. The central government raised its 2024 budget deficit to the highest in over three decades. Meanwhile, U.S. markets have soaredup over 60% since early 2022making now a tempting time to reel in offshore profits. China has had access to overseas bank data since it joined the OECD's Common Reporting Standard in 2018. In Hong Kong, banks routinely report account details for clients flagged as Chinese tax residents. Until recently, that information sat quietly. Now, it's being put to work.
But not all investors are affected equally. Those trading Hong Kong stocks via the Stock Connect program remain exempt from capital gains taxat least through 2027. Domestic trades are still tax-free too. That policy protects China's capital markets, even as the net tightens around overseas profits. For investors caught off guard, the sting is real. Unlike in the U.S., they can't offset past losses to reduce the bill. The message from Beijing is subtle but serious: if you've made money abroad, now's the time to settle up.
This article first appeared on GuruFocus.
Inicia sesión para acceder a tu portafolio
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
10 minutes ago
- Yahoo
Asian Dividend Stocks Offering Yields Up To 7.2%
As global markets experience a surge propelled by favorable trade deals, Asian markets are also showing signs of optimism with key indices advancing on hopes for continued economic stability. In this environment, dividend stocks in Asia offer an appealing investment opportunity for those seeking steady income streams amid the evolving trade landscape. Top 10 Dividend Stocks In Asia Name Dividend Yield Dividend Rating Yamato Kogyo (TSE:5444) 4.24% ★★★★★★ Wuliangye YibinLtd (SZSE:000858) 5.13% ★★★★★★ NCD (TSE:4783) 4.13% ★★★★★★ Japan Excellent (TSE:8987) 4.22% ★★★★★★ Guangxi LiuYao Group (SHSE:603368) 4.25% ★★★★★★ GakkyushaLtd (TSE:9769) 4.42% ★★★★★★ DoshishaLtd (TSE:7483) 4.06% ★★★★★★ Daito Trust ConstructionLtd (TSE:1878) 4.44% ★★★★★★ Daicel (TSE:4202) 4.59% ★★★★★★ CAC Holdings (TSE:4725) 4.93% ★★★★★★ Click here to see the full list of 1161 stocks from our Top Asian Dividend Stocks screener. Underneath we present a selection of stocks filtered out by our screen. Stella International Holdings Simply Wall St Dividend Rating: ★★★★★☆ Overview: Stella International Holdings Limited is an investment holding company involved in the development, manufacture, and sale of footwear products and leather goods across North America, China, Europe, Asia, and other international markets with a market cap of HK$13.26 billion. Operations: Stella International Holdings Limited generates its revenue primarily from two segments: Manufacturing, which contributes $1.54 billion, and Retailing and Wholesaling, which adds $2.60 million. Dividend Yield: 7.2% Stella International Holdings offers a compelling dividend yield of 7.24%, positioning it in the top 25% of Hong Kong market payers. Despite its reasonable payout and cash payout ratios, indicating dividends are covered by earnings and cash flow, the company's dividend history is marked by volatility and unreliability over the past decade. Recent earnings growth of 21.2% could support future payouts, but investors should remain cautious due to historical instability in dividend payments. Get an in-depth perspective on Stella International Holdings' performance by reading our dividend report here. Our comprehensive valuation report raises the possibility that Stella International Holdings is priced higher than what may be justified by its financials. Sumitomo Forestry Simply Wall St Dividend Rating: ★★★★☆☆ Overview: Sumitomo Forestry Co., Ltd. operates in timber building materials, housing, construction, real estate, and resources and environment sectors across Japan, the United States, Australia, China, Indonesia, New Zealand and internationally with a market cap of ¥960.72 billion. Operations: Sumitomo Forestry Co., Ltd.'s revenue segments include Housing at ¥557.58 billion, Timber Building Materials Business at ¥253.14 billion, Global Construction and Real Estate at ¥1.28 trillion, and Environment and Resource at ¥26.46 billion. Dividend Yield: 3.9% Sumitomo Forestry's recent board meeting led to a stock split and revision of its dividend policy, aiming to enhance liquidity and investor base. The company revised its full-year dividend forecast slightly upward to JPY 91.50 per share. Despite being in the top 25% of JP market payers with a 3.88% yield, dividends are not well covered by free cash flows and have been historically volatile, though the payout ratio remains low at 25.7%. Click to explore a detailed breakdown of our findings in Sumitomo Forestry's dividend report. Upon reviewing our latest valuation report, Sumitomo Forestry's share price might be too pessimistic. Simply Wall St Dividend Rating: ★★★★★☆ Overview: Co., Ltd. specializes in the research, development, manufacture, and sale of heat exchangers for various applications including automobiles and industrial machines, with a market cap of ¥30.19 billion. Operations: Co., Ltd.'s revenue is primarily derived from its operations in Japan (¥80.20 billion), the United States (¥44.59 billion), Asia (¥24.12 billion), China (¥17.06 billion), and Europe (¥4.90 billion). Dividend Yield: 4.9% dividend yield of 4.85% places it among the top 25% of payers in Japan, with a payout ratio of 36.7%, indicating dividends are well covered by earnings. However, its dividend history is volatile, lacking consistent growth over the past decade. Recent share buybacks totaling ¥763.37 million aim to enhance shareholder value and capital efficiency. Despite a recent dividend reduction from ¥150 to ¥120 per share for fiscal 2026, earnings have grown significantly by 241.4%. Unlock comprehensive insights into our analysis of stock in this dividend report. According our valuation report, there's an indication that share price might be on the expensive side. Make It Happen Click this link to deep-dive into the 1161 companies within our Top Asian Dividend Stocks screener. Hold shares in these firms? Setup your portfolio in Simply Wall St to seamlessly track your investments and receive personalized updates on your portfolio's performance. Maximize your investment potential with Simply Wall St, the comprehensive app that offers global market insights for free. Contemplating Other Strategies? Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include SEHK:1836 TSE:1911 and TSE:7236. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
Yahoo
18 minutes ago
- Yahoo
China's industrial profits fall further in June
BEIJING (Reuters) -China's industrial profits continued to fall in June, data showed on Sunday, as entrenched producer deflation put more margin pressure on businesses in the face of subdued domestic demand and lingering global trade uncertainty. China's economy slowed less than expected in the second quarter in a show of resilience to U.S. tariffs. But punishing price wars among producers have prompted Beijing to pledge tougher regulations for autos and solar panels, among other industries engaged in cutthroat competition. Profits at China's industrial firms fell 4.3% in June from a year earlier, following a decline of 9.1% in May, while first-half profits were down 1.8% versus a slide of 1.1% in the period from January to May, National Bureau of Statistics data showed. As China faces a complex and changing external environment, it must deepen the formation of a "unified national market, expand and strengthen domestic circulation and promote high-quality development of the industrial economy", said Yu Weining, a statistician at the bureau. Lu Zhe, chief economist at Soochow Securities, said industrial profits may improve, as China's actions against self-destructively fierce competition and a government trade-in scheme - a version of a "cash for clunkers" programme - should help control the price war amongst companies and expand consumer demand. Factory-gate deflation deepened last month to its worst in almost two years, as softening domestic demand worsened overcapacity woes. State-owned automakers Guangzhou Automobile Group and JAC Group expect to post their biggest ever second-quarter losses next month. China's leaders pledged this month to ramp up efforts to regulate aggressive price-cutting, fuelling expectations that a fresh round of industrial capacity cuts might be approaching. But analysts say this round of supply-side reforms will not pull China out of deflation as quickly as a decade ago, citing challenges such as job losses. State-owned firms recorded a 7.6% decline in profits in the first half. Private-sector companies reported a rise of 1.7% while foreign firms logged a 2.5% gain, the data showed. Industrial profit numbers cover firms with annual revenue of at least 20 million yuan ($2.8 million) from their main operations. ($1=7.1561 Chinese yuan renminbi) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
35 minutes ago
- Yahoo
Asian Hidden Gems and 3 Small Caps with Promising Potential
Amidst a backdrop of favorable trade deals and positive market sentiment, Asian markets have been buoyed by hopes for extended tariff truces and strengthening economic ties. As global indices reach new heights, investors are increasingly turning their attention to small-cap stocks in Asia that demonstrate resilience and growth potential in this dynamic environment. Top 10 Undiscovered Gems With Strong Fundamentals In Asia Name Debt To Equity Revenue Growth Earnings Growth Health Rating Changjiu Holdings NA 11.55% 10.44% ★★★★★★ Korea Ratings NA 0.72% 2.33% ★★★★★★ Shenzhen Coship Electronics NA 8.20% 44.45% ★★★★★★ ManpowerGroup Greater China NA 15.01% 0.09% ★★★★★★ Qingmu Tec 0.74% 13.00% -19.41% ★★★★★★ Center International GroupLtd 18.20% 0.69% -31.63% ★★★★★★ Togami Electric Mfg 3.09% 4.88% 16.96% ★★★★★☆ Guangdong Transtek Medical Electronics 18.14% -7.58% -3.26% ★★★★★☆ Hunan Investment GroupLtd 4.50% 25.84% 15.32% ★★★★★☆ Wison Engineering Services 41.36% -3.70% -15.32% ★★★★★☆ Click here to see the full list of 2600 stocks from our Asian Undiscovered Gems With Strong Fundamentals screener. Let's uncover some gems from our specialized screener. Philippine National Bank Simply Wall St Value Rating: ★★★★☆☆ Overview: Philippine National Bank offers a range of banking and financial products and services, with a market capitalization of approximately ₱95.82 billion. Operations: The bank's primary revenue streams include Retail Banking at ₱33.79 billion and Corporate Banking at ₱12.42 billion, with Treasury operations contributing ₱11.50 billion. Philippine National Bank is a notable player with total assets of ₱1,279.3 billion and equity at ₱218.7 billion, reflecting its robust financial foundation. The bank's earnings growth of 18.5% outpaces the industry average of 10.9%, highlighting its competitive edge in the market. Despite trading at a value 35% below estimated fair value, it faces challenges with high bad loans at 6.9% and an insufficient allowance for these loans, currently only covering 91%. Recent leadership changes aim to bolster strategic areas like institutional banking and digital innovation, suggesting a proactive approach to future growth opportunities. Unlock comprehensive insights into our analysis of Philippine National Bank stock in this health report. Learn about Philippine National Bank's historical performance. Shanghai Xinhua Media Simply Wall St Value Rating: ★★★★★★ Overview: Shanghai Xinhua Media Co., Ltd. is a publishing and media enterprise operating in the cultural media sector in China, with a market cap of CN¥8.41 billion. Operations: Shanghai Xinhua Media's primary revenue streams are derived from its publishing and media operations within China's cultural media sector. The company has a market capitalization of CN¥8.41 billion. Shanghai Xinhua Media, a nimble player in the media sector, has shown impressive financial health with no debt on its books over the past five years. The company recorded an 18.6% earnings growth last year, outpacing the media industry's -20.1%, though this was influenced by a one-off gain of CN¥92M. Free cash flow remains positive, suggesting solid operational efficiency despite capital expenditures reaching CN¥121M recently. This performance hints at robust management and strategic positioning within its industry, potentially offering investors a compelling opportunity amidst broader market challenges in Asia's dynamic landscape. Delve into the full analysis health report here for a deeper understanding of Shanghai Xinhua Media. Evaluate Shanghai Xinhua Media's historical performance by accessing our past performance report. AnHui Jinchun Nonwoven Simply Wall St Value Rating: ★★★★★☆ Overview: AnHui Jinchun Nonwoven Co., Ltd. specializes in the production and sale of nonwoven products, with a market capitalization of CN¥2.99 billion. Operations: The company generates revenue primarily from the production and sale of nonwoven products. It has a market capitalization of CN¥2.99 billion. AnHui Jinchun Nonwoven, a smaller player in the textile industry, has shown impressive earnings growth of 78.4% over the past year, outpacing its sector's -5.9%. Despite this growth, earnings have decreased by an average of 53.4% annually over five years. The company is financially sound with more cash than total debt and a reduced debt-to-equity ratio from 11.4% to 8.2% in five years. Recently, it completed a share buyback of 100,000 shares for CNY 1.52 million and announced a final cash dividend of CNY 1 per ten shares for shareholders as of May 2025. Click here and access our complete health analysis report to understand the dynamics of AnHui Jinchun Nonwoven. Explore historical data to track AnHui Jinchun Nonwoven's performance over time in our Past section. Taking Advantage Embark on your investment journey to our 2600 Asian Undiscovered Gems With Strong Fundamentals selection here. Already own these companies? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks. Elevate your portfolio with Simply Wall St, the ultimate app for investors seeking global market coverage. Searching for a Fresh Perspective? Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include PSE:PNB SHSE:600825 and SZSE:300877. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
