Hong Kong-listed shares of major insurers tumbled on Thursday after a report that Chinese mainland tax authorities have begun levying taxes on income earned from offshore insurance policies, raising concerns over demand from mainland customers, Reuters reported.
The selloff followed a Caixin report stating that tax authorities in Beijing and Hangzhou have started applying a 20% personal income tax on returns from Hong Kong insurance policies. The tax reportedly covers dividend payouts and interest earned on prepaid premiums, a move that analysts believe signals tighter scrutiny of offshore investments by Chinese authorities.
