Minister 'confident in HK's insurance products'

Hong Kong's Minister for Financial Services and the Treasury, Christopher Hui, expressed confidence in the city's insurance products. Shares in major insurers experienced a sharp decline on Thursday following reports that tax authorities in Beijing and Hangzhou had started taxing residents' earnings from offshore insurance policies.

The proposed tax rate of 20 percent would be applied to policy dividends and interest earned on prepaid premiums, according to the Caixin news website. AIA, FWD, and Prudential all saw declines of 6 percent, 5.6 percent, and 4.6 percent respectively. During a press conference, Hui addressed the report, stating that Hong Kong and its regulatory bodies maintain communication with relevant mainland departments on various policies and measures.

He reiterated confidence in the products offered by Hong Kong's insurance industry, highlighting the competitiveness of product design and distribution channels. Hui emphasized that as an international financial hub, Hong Kong serves clients from around the world, provided they comply with taxation laws. He noted that rumors and speculation are common, but the government must strive to maintain competitiveness in different financial sectors amidst changing circumstances.

Hong Kong is part of approximately 120 tax jurisdictions that comply with the Common Reporting Standard, facilitating the exchange of financial account information for tax purposes.