Our daily round-up of the best China stories from the 21st Century Business Herald

China issues new tax policy to lift capital market

China has approved a policy designed to promote long-term investments while aiming to curb short-term speculation.

The differentiated dividend tax rates will come into effect from January 1 and will benefit long-term investors.

Individual investors will be taxed on their dividends from listed companies according to their shareholding period, the Ministry of Finance said in a statement on its website yesterday.

Investors holding shares for more than a year will pay only 5 percent. Those holding for less than a year but more than a month will pay 10 percent while investors holding shares for less than a month will end up paying 20 percent, the statement said.

China’s energy demand to slow in the 12th Five-year

During the 12th Five-year period (2011-2015), China’s energy demand is expected to grow 4.7 percent, down 2 percentage points from the previous five year, according to the first energy estimation by the National Development and Reform Commission.

Terra Firma’s China business

Terra firma, one of Europe's leading private equity investment firms, will partner with China Development Bank to set up a fund to invest in global renewable energy projects.

Guy Hands, chairman and chief investment officer of terra firma, announced the news at a recent meeting.

The initial size of the fund would be between $3 and $5 billion, which would be invested in European and US renewable energy infrastructure projects, said Shi Bo, president of the company's China branch.

Besides, the investment firm is likely to introduce Four Seasons Health Care in China, a country, which will see 30 percent of its citizens over sixty by 2030.