$XTALPI(02228.HK) Chinese concept stocks are being sold off to pay taxes. This could be a key factor.
Repost:
Bloomberg reports: Offshore trust taxation - The final ultimatum has been issued, but almost no one is reporting.
The State Taxation Administration issued a "final reminder" just three days before the Oct 22 grace period expires, yet very few people have actually filed.
On Monday, Oct 19, the STA posted a reminder on its official website, urging relevant taxpayers to review their offshore trust arrangements and file taxes in accordance with the law by Oct 22, "to avoid late fees and other related risks." In the preceding months, local tax bureaus had already sent notices and SMS messages through various channels for three months. While the wording remained soft ("reminder," "helping taxpayers fulfill their legal obligations"), the timing combined with the mention of "late fees" effectively amounts to a final ultimatum.
An asset management industry insider, speaking anonymously, said: "Many mainland clients have come to us for consultations recently, but very few have actually completed the filing process. 'We do advise our clients to file, but they often choose to wait and see, or simply don't file at all. Ultimately, whether to file is the client's own decision.'"
Oct 22 is not the end, but a watershed moment for enforcement.