Hang Seng Index slumps over 450 points at noon on Thursday, insurers sink

Hong Kong stocks plunged over 450 points by noon on Thursday, dragged by insurers and banks.

The benchmark Hang Seng Index fell by 452 points, or 1.8 percent to 25,463 points at noon.

AIA (1299) shares slid 8.8 percent, Prudential (2378) fell more than 5.8 percent, and Hong Kong-based insurer FWD Group (1828) was down 5.3 percent.

Beijing and Hangzhou authorities have started to apply personal income tax rates of 20 percent on returns from Hong Kong insurance policies, including dividend payouts and interest earned on prepaid premiums, Caixin reported on Wednesday.

The move was seen by analysts as a potential sharpening of China's increased scrutiny of offshore investments.

Chinese insurers Ping An Insurance (2318) and China Life Insurance (2628) were down more than 1 percent as both firms have a sizable offshore business with Hong Kong assets.

HSBC (0005) fell 2.3 percent and Standard Chartered (2888) was down 1.5 percent. Both have large insurance units.

The half-day market turnover was HK$149 billion. 

The Hang Seng Tech Index was down by 1.9 percent to 4,840 points at noon. 

In the mainland, the Shanghai Stock Exchange Composite Index was flat at 3,878 points and the Shenzhen Stock Exchange Component Index went down by 0.5 percent to 14,070  points at the midday close.

Staff reporter and Reuters

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