CITIC Securities: Speculation on the principle of fund tax shield and tax-free exit path

Jinshi data, August 22nd news, Mingming, chief economist of CITIC Securities, said that according to the current tax policies, the tax advantages of public sale funds are most obvious, and some bank proprietary trading departments conduct 'reasonable tax avoidance' through outsourcing. According to our calculations, the scale of commercial bank fund outsourcing may be close to 70-80 trillion yuan, and the annual savings in tax costs may be in the hundred billion level. From the perspective of 'leveling regulation' and 'removing channels', there is indeed a possibility of canceling the tax exemption of funds in the future, but the short-term possibility of implementation is limited and the operability is not strong. Even if the tax exemption of funds starts to be withdrawn in the future, we believe it will be difficult to do so in one fell swoop. It is highly likely to be implemented in a small scale, coordinated with the 'new and old division', to achieve a smooth transition.