Hang Seng Index pares losses on Thurs afternoon, as investors rethink insurance crackdown impact

Hong Kong stocks pared some losses weighted by insurers in the afternoon trade on Thursday, as investors reevaluated the impact of China’s latest regulatory crackdown on offshore insurance income.

The benchmark Hang Seng Index fell by 385 points, or 1.5 percent, to 25,530 points at the close, having plunged over 500 points at one point in the morning.

The market turnover was HK$255 billion.

Shares of AIA (1299) slid nearly 6 percent and became the worst blue-chip stock on Thursday. Prudential (2378) fell 4.6 percent, and FWD Group (1828) was down 5.6 percent. 

It was reported that some local Chinese tax authorities are imposing a 20 percent levy on insurance policy dividends earned offshore. The fear also spread to the local property market, with major developers including Sun Hung Kai Properties (0016) falling 4.7 percent. 

The Hang Seng Tech Index was down by 2.3 percent to 4,820 points.

In the mainland, the Shanghai Stock Exchange Composite Index was up by 0.6 percent to 3,900 points and the Shenzhen Stock Exchange Component Index dipped 0.2 percent to 14,110 points.

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