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By Ding Qi (chinadaily.com.cn)
Updated: 2008-03-20 11:09

Mutual fund companies will get a temporary tax exemption in their stock investment income in China, the Shanghai Securities News reported on Thursday citing a notice from the nation's financial regulator.

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Jointly issued by the Ministry of Finance and State Administration of Taxation, the notice said that tax-exempt items include fund companies' profits from stock and bond trading, dividends, and bond interest.

Investor gains from mutual fund dividends as well as fund managers' income from mutual fund tradings are also now exempted from income taxes, according to the notice.

The preferential policies are aimed at promoting China's stock funds, the notice said, but it did not say how long the tax suspension would last.