Stockholders and investors are watching the move of stock indices at a securities company in Nanjing on June 7, 2005. [newsphoto]

The Ministry of Finance and the State Administration of Taxation issued a joint circular on June 15, 2005, announcing related regulations on taxation policies in the piloted split-share reform.

The circular says that the stamp tax shall be temporarily exempted on share transactions arising from consideration paid by holders of non-tradable shares to holders of tradable shares in the reform of split share structure.

It adds that holders of tradable shares shall be temporarily exempted from enterprise and individual income tax on shares and cash proceeds paid by holders of non-tradable shares as consideration in the reform of split share structure.