The Hong Kong Insurance Authority: The requirement for taxation on overseas investment income from the Mainland has always existed, and the market should not overinterpret it.

Recently, the market has been concerned about the Mainland's intention to include various types of income generated from overseas insurance policies within the tax scope, worrying about the impact on Hong Kong's insurance business. The Hong Kong Insurance Authority responded, stating that the Hong Kong government and the Insurance Authority are closely monitoring the latest developments regarding the Mainland's tax arrangements for financial products and will maintain close communication with the industry. The Insurance Authority pointed out that the requirement for Chinese residents to declare and pay taxes on overseas investment income has always existed, and there is no need for the market to overinterpret or speculate. The Authority emphasized that Hong Kong's insurance market is mature, with flexible and advanced product designs that can offer services such as currency options, global asset allocation, life planning, and wealth inheritance, which it believes still hold a certain appeal for Mainland clients.