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Energy service companies will also be exempted from income tax from the first year they earn income to the third year. The tax rate for these companies is half of the normal rate of 25 percent, from the fourth year to the sixth.An energy service company is a business that provides energy management services to an energy user.Those providing contracted services are entitled to tax exemptions.The PBOC actively participated in international and regional anti-money laundering organizations.In June 2007, China became a member of the Financial Action Task Force (FATF), an inter-governmental body to promote government policies to combat money laundering.The report said the central bank would further improve the laws and regulations and supervise financial institutions to guard against money laundering.It would also enhance cooperation with other countries to monitor cross-border capital flows in order to effectively prevent money laundering.

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The ChiNext Index, launched by the Shenzhen Stock Exchange (SSE) on June 1, 2010, fell 14.87 points, or 1.33 percent, to close at 1,100.46 Friday.Chinese Defense Minister Liang Guanglie met Friday with Indonesian Vice Minister of Defense Sjafrie Sjamsoedin, pledging to promote bilateral defense cooperation.Liang, also a State Councilor, said China attached great importance to developing friendly ties with Indonesia and was ready to promote the strategic partnership for greater development.He spoke highly of bilateral defense cooperation, saying remarkable progress had been made, while exchanges and cooperation had been good in security cooperation at bilateral and multilateral levels."We hope both sides will strengthen cooperation to promote inter-military relations and contribute to peace and development in the region," Liang said.Sjafrie hailed the rapid growth of defense cooperation between Indonesia and China, saying his country was ready to work with China to promote cooperation in defense and regional security affairs.He said the two sides should deepen the strategic partnership and strive for peace and stability in the region.The index, together with the Shenzhen Component Index and the Shenzhen SME (small and medium-sized enterprises) Board Index, makes up the three core indices reflecting the performance of China's stocks listed on the exchange.The ChiNext Board, which started trading on October 30, 2009, is a Nasdaq-style growth enterprises board, and mainly lists high-tech companies and those with high growth potential.China's stock index futures closed lower Friday with the contract for March, the most actively traded, down 0.93 percent from the previous trading day to end at 3,231.4 points.The February contract fell 0.72 percent to close at 3,214.4 points. The June contract was down 0.98 percent to 3,301.6 points, and the September contract fell 0.87 percent to 3,349.8 points.The stock-index contracts, agreements to buy or sell the Hushen 300 Index at a preset value on an agreed date are designed to allow investors to bet on and profit from both gains and declines in the market.The index futures was launched at the China Financial Futures Exchange (CFFEX) and started trading from April 16, 2010. The CFFEX has set the base value for all the four contracts at 3,399 points.However, growth in the doemestic real estate sector was expected to slow, Kong Qingping told Reuters on the sidelines of an industry event.In 2010, China Overseas Land posted a 40.4 percent jump inproperty sales to HK$67.1 billion ($8.64 billion), while total gross floor area sold rose 11.2 percent to 5.3 million square metres, it said earlier this year.Shares of the developer, which realised its strongest sales in first-tier cities such as Shanghai, Suzhou and Hangzhou last year, have lost 10 percent since the beginning of the year.The stock is hovering at a 2-½ year low because of worries over more tightening to curb the red-hot property sector.