Ministry of Finance State Taxation Administration China Securities Regulatory Commission Announcement No.23 of 2023

In relation to extending the implementation of the Individual Income Tax policy on the stock exchange connectivity mechanism between Shanghai and Hong Kong Special Administrative Region (hereinafter referred to as Shanghai-Hong Kong Stock Connect), the stock exchange connectivity mechanism between Shenzhen and Hong Kong Special Administrative Region (hereinafter referred to as the Shenzhen-Hong Kong Stock Connect), and mutual recognition of funds between the Chinese mainland and Hong Kong Special Administrative Region (hereinafter referred to as the Mutual Recognition of Funds), it is hereby announced that:

1. The income of Chinese mainland individual investors, obtained as price difference of transferring, from investing in stocks listed on The Stock Exchange of Hong Kong Limited through Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect, as well as from trading shares of Hong Kong funds through the Mutual Recognition of Funds, may be temporarily exempt from Individual Income Tax.

2. This Announcement shall be valid until December 31, 2027.

Ministry of Finance

State Taxation Administration

China Securities Regulatory Commission

August 21, 2023

All information in this document is authentic in Chinese. English is provided for reference only. In case of any discrepancy, the Chinese version shall prevail.