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China’s Restricted-Share Transfer Income Tax Up 59.7% in First Eight Months

China’s individual income tax on restricted-share transfers rose 59.7% in the first eight months of the year, tax authorities said, as active capital-market trading lifted securities transaction stamp duty, corporate income tax, personal income tax and domestic value-added tax. Securities-sector tax revenue grew 65.6% year on year over the same period, while insurance and other financial sectors posted gains of 14.6% and 18.5% respectively.

Original source

AI take

The outsized gain in restricted-share transfer tax points to a wave of lock-up expiries being monetised into a rising market, rather than to any change in the tax rules themselves. That distinction matters: it is a lagging indicator of realised gains by pre-IPO holders, not a signal about future supply. The gap between securities-related revenue and the slower insurance and broader financial sectors also shows where activity has concentrated. Whether that realisation pace continues as lock-ups roll off is the open question.

Generated by AI for reference only.

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