Changes in Hong Kong stocks | According to reports, Hong Kong Insurance policy income introduced 20% personal tax, AIA (01299) fell more than 8%, Prudential (02378) fell by more than 5%

The Zhitong Finance App learned that Hong Kong insurance stocks fell under pressure. As of press release, AIA (01299) fell 7.85% to HK$71.65; Prudential (02378) fell 5.36% to HK$107.6.

According to Caixin's August 5 report, China's tax authorities have begun levying 20% personal income tax on overseas insurance policy income. The report quoted tax lawyers and insurance industry insiders as saying that Beijing and Hangzhou have begun implementing relevant measures to levy a 20% tax rate on the proceeds of Hong Kong insurance policies (including dividend payments and interest generated from prepaid premiums). Jefferies analysis points out that taxing the proceeds of overseas insurance policies will reduce the appeal of Hong Kong insurance products compared to mainland products and put pressure on sales, but at the same time, it may also ease the extreme concerns of the market that the mainland will eventually completely ban overseas insurance sales.

Earlier research reports from J.P. Morgan Chase said that the mainland visitor business only accounts for about 21% of the value of AIA's new business, while the remaining nearly 80% of the non-mainland visitor business performance is generally on track, and India's Tata AIA has become a long-term growth engine. Furthermore, in its annual results announced in March this year, Prudential attributed the 12% increase in profit from the new financial hub business to sales growth for local customers and visitors to mainland China.