Minister 'confident in HK's insurance products'

Christopher Hui, the Secretary for Financial Services and the Treasury, expressed confidence in Hong Kong's insurance products. On the same day that Caixin, a Beijing-based news website, reported that tax authorities in Beijing and Hangzhou had started taxing individuals' earnings from offshore insurance policies, shares in major insurers experienced a significant drop.

The proposed tax rate of 20 percent was applied to policy dividends and interest earned on prepaid premiums, as per the report. Following the news, AIA declined by 6 percent, FWD dropped 5.6 percent, and Prudential fell 4.6 percent. During a press conference, Hui addressed the report while promoting a new batch of silver bonds. He stated that the government and regulatory bodies have consistently maintained communication with relevant mainland departments regarding various policies and measures.

Regarding the situation mentioned in the report, Hui expressed confidence in the products offered by Hong Kong's insurance industry, particularly in terms of product design and distribution channels. He emphasized that Hong Kong serves clients from various parts of the world, provided they comply with taxation laws. The minister acknowledged that rumors and speculation about such tax implications are common but stressed that Hong Kong must strive to remain competitive in different financial sectors amid changing circumstances.

Hong Kong is part of around 120 tax jurisdictions that follow the Common Reporting Standard, a mechanism facilitating the exchange of financial account information for tax purposes.