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 during a press conference. Shares in major insurers experienced significant drops the previous day following a report from the tax capital, Beijing. The report claimed that tax authorities in Beijing and Hangzhou were imposing a 20% tax on policy dividends and interest earned on prepaid premiums. AIA's stock fell by 6%, FWD by 5.6%, and Prudential by 4.6%.

Hui, who was questioned about the report, stated that the government and regulatory bodies maintain constant communication with relevant mainland departments regarding policies and measures. He emphasized the country's confidence in Hong Kong's insurance industry, praising its product design and distribution channels. The minister further highlighted Hong Kong's role as an international financial hub, serving clients worldwide as long as they comply with taxation laws.

He acknowledged that rumors and speculation are common, but underscored the importance of remaining competitive in the face of changing circumstances, and expressed confidence in the industry's ability to adapt. Hui declined to comment on specific reports, but pointed out that Hong Kong is part of a network of over 120 tax jurisdictions that adhere to the Common Reporting Standard, a system designed to facilitate the exchange of financial account information for tax purposes.