(Yicai Global) May 23 -- Shares in Chinese software developers opened higher this morning after finance and tax authorities unveiled plans to offer them a tax break over the next five years.

Beijing VRV Software [SHE:300352] began 9.5 percent higher at the open, but its gains had narrowed to 1.9 percent as of 10.50 a.m. Beijing Join-Cheer Software also started up 6.5 percent but slid slightly to a 5 percent gain.

China's Ministry of Finance and State Taxation Administration said yesterday that it would offer a tax break to qualified domestic and foreign chip designers and software makers in China. Companies that meet requirements will be exempt from income tax over the next two years and will pay just half of the usual 25 percent rate for the following three.

The policy was first rolled out in 2016 and has been extended this year. Eligible companies will need to meet criteria focused on quality certificates and sales revenue.

Editor: James Boynton