BEIJING — China said on Dec 2 it has extended tax preferential policies to overseas investors investing in the Chinese mainland bond market amid efforts to further open up the sector.

Overseas institutional investors are exempted from corporate income tax and value-added tax on their bond interest gains from investment in the Chinese mainland bond market, according to an announcement by the Ministry of Finance and the State Administration of Taxation.

The exemption took effect on Nov 7, 2021 and will last until Dec 31, 2025, the announcement said.

Overseas institutional investors now can invest in China's interbank bond market through various channels, including Qualified Foreign Institutional Investors and Renminbi Qualified Foreign Institutional Investors, direct market entry and the Bond Connect program.