BEIJING: China will waive income tax for three years for foreign investors trading the country’s new crude futures contract, the Ministry of Finance said on Tuesday, in a bid to attract overseas capital for the much anticipated launch.
The start of trading on Monday will mark the culmination of a years-long push by China to create Asia’s first oil futures benchmark, and is aimed at giving the world’s biggest oil importer more clout in pricing crude sold to Asia.
It will potentially give the Shanghai International Energy Exchange, which will operate the new contract, a share of the trillions of dollars each year in oil futures trading.
The finance ministry said foreign brokers will be exempted from paying income tax on commissions they earn from dealing in the new Shanghai crude futures.
The tax exemption could help encourage foreign players to engage with the new contract, despite concerns about issues such as foreign exchange conversion and potential capital curbs.
The number of foreign investors seeking to open non-resident accounts to allow trading has so far been below expectations, a source at CITIC, one of eight banks that is handling margin deposits for foreign investors, said. The source declined to be named as he is not authorized to talk with media.
The oil market is closely watching the liquidity of the contract, as institutional investors and brokers expect trading volumes and open interest to be relatively small compared with China’s iron ore, copper and steel futures contracts.
China in recent days has provided more details on the contract, including margins, trading limits and transaction fees, and has approved the use of six bonded storage warehouses.
China waives income tax for foreign investors trading yuan crude futures
China waives income tax for foreign investors trading yuan crude futures
Closing Bell: Saudi main index climbs to 10,485
RIYADH: Saudi Arabia’s Tadawul All Share Index edged up on Sunday, gaining 34.32 points, or 0.33 percent, to close at 10,484.59.
The total trading turnover of the benchmark index stood at SR2.59 billion ($690 million), with 168 listed stocks advancing and 87 declining.
The Kingdom’s parallel market Nomu also gained 100.37 points to close at 23,454.65.
The MSCI Tadawul Index advanced by 0.13 points to 1,377.44.
The best-performing stock on the main market was Nama Chemicals Co., whose share price increased by 9.98 percent to SR22.38.
The share price of Al Masar Al Shamil Education Co. rose by 9.15 percent to SR23.85.
Saudi Paper Manufacturing Co. also saw its stock price climb by 8.42 percent to SR57.95.
Conversely, the share price of Canadian Medical Center Co. dropped by 6.37 percent to SR6.03.
The stock price of Kingdom Holding Co. also declined by 3.16 percent to SR8.28.
In the parallel market, Alfakhera for Mens Tailoring Co. was the top performer, with its share price advancing by 16.40 percent to SR8.80.
On the announcements front, Theeb Rent a Car Co. said it had signed a long-term vehicle leasing services contract valued at SR110.4 million with Hungerstation Co.
Under the deal, Theeb will lease 2,000 vehicles to HungerStation for a period of four years starting from 2026, according to a Tadawul statement.
The statement added that the vehicles will be delivered in batches within the first six months from the contract start date, taking into consideration global logistical circumstances and procedures beyond the control of both the agents and the company.
The contract is expected to have a positive impact on the company’s financials from the first quarter of 2026.
The share price of Theeb Rent a Car Co. declined by 0.79 percent to SR37.80.
