'No gains tax' for stock connect

Regulators may waive the capital gains tax on transactions through the Shanghai-Hong Kong Stock Connect program that is scheduled to begin on Nov 17, according to brokerages on the Chinese mainland and in Hong Kong.

The move, which is widely expected to be announced soon, will remove one issue for investors. Stockbrokers have said that the tax is confusing because it applies only under mainland rules. Hong Kong abolished the capital gains tax long ago.

"I heard that there will be a tax exemption period in the first six months after the launch of the program. Some people said that the tax holiday could last for as long as three years," a senior brokerage operator in Hong Kong said.