On 12 April 2019, China’s Ministry of Finance announced the launch of a pilot program to support innovative-driven strategy, which includes incentives for investments in Chinese Depository Receipts (CDRs) issued by innovative Chinese enterprises.

The incentives provide a tax exemption on dividends and capital gains derived from qualifying CDRs and there are also exemptions available for individual income tax and value added tax (VAT) purposes. For individuals, a 36-month temporary exemption is specified.