Hong Kong insurers' shares slide on report China to tax offshore insurance income
AIA Group logo is pictured on a smartphone in front of an electronic display showing stock graph in this illustration taken, Dec 4, 2021.
PHOTO: Reuters
HONG KONG — Hong Kong-listed shares of major insurers Prudential and AIA Group, as well as HSBC which has a big insurance business, opened sharply lower on Thursday (Aug 5), after Caixin reported China's mainland tax authorities are levying taxes on insurance policy income earned offshore.
The move was seen by analysts as a potential sharpening of China's increased scrutiny of offshore investments.
Beijing and Hangzhou authorities have started to apply personal income tax rates of 20 per cent on returns from Hong Kong insurance policies, including dividend payouts and interest earned on prepaid premiums, according to a Caixin report on Wednesday.
China's finance ministry and the National Financial Regulatory Administration have not responded to Reuters request for comment.
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