Saturday, October 1, 2011

Bank of Communication (tkr: 3328 HK) - 60% Dividend Withholding!

I was just complaining the other day of the 10% dividend withholding tax in China.  But Bank of Communication ('BoCom') really took that up a notch and inflicted a 60% dividend tax on itself (read here). 

Maybe David Webb got it all wrong - BoCom is just trying to generate more tax revenue (ie. value) for the government, its ultimate shareholder.  Good job creating shareholder value!