Shares of Prudential slumped as much as 13% on Wednesday after a Caixin report said Chinese mainland tax authorities had begun collecting personal income tax on returns earned from offshore insurance policies, raising fresh concerns over Beijing's tightening oversight of cross-border investments, according to Reuters.
The report said tax authorities in Beijing and Hangzhou had started enforcing a 20% personal income tax on returns from Hong Kong insurance policies, including dividend payouts and interest earned on prepaid premiums. The move is seen as part of China's broader efforts to strengthen oversight of outbound capital flows.
