On August 14, AIA fell 3.03% in regular trading, trading at HK$70.35/share with turnover of HK$18.06 billion, extending weakness amid ongoing concerns over China's new tax policy targeting overseas insurance policy returns.
Reports earlier this month indicated that Chinese tax authorities in Beijing and Hangzhou have begun levying a 20% personal income tax on returns from Hong Kong insurance policies, including dividends and interest generated from prepaid premiums. The move is aimed at closing a long-standing regulatory loophole, and has weighed heavily on insurers with significant mainland China visitor (MCV) business exposure.
The broader Life and Health Insurance sector traded lower, with PING AN down 1.53%, CHINA LIFE down 2.90%, NCI down 0.96%, CHINA TAIPING down 0.59%, and SUNSHINE INS down 1.32%. AIA is scheduled to report interim results on August 19, with JPMorgan previously forecasting a 15% year-over-year increase in new business value to US$3.26 billion for the first half. Multiple investment banks had maintained buy ratings with target prices ranging from HK$100 to HK$118 prior to the tax policy development.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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