Asia-focused financial firms fall after report of China tax hit on offshore insurance
BUZZ-Asia-focused financial firms fall after report of China tax hit on offshore insurance ** London-listed shares of insurer Prudential PRU.L fall 11.3% to 971.4p, worst day since March 2023
** PRU among top FTSE 100 .FTSE losers after Caixin, a Chinese financial news publication, reported China has started taxing returns from offshore insurance policies
** Other Asia-focused financial stocks also under pressure, with HSBC HSBA.L down 6.2% and Standard Chartered STAN.L falling more than 5.9%
** Caixin reported that Chinese mainland tax authorities have begun applying a 20% tax rate to returns from Hong Kong insurance policies, closing a longstanding loophole that had allowed many mainland residents to earn offshore policy income with limited tax scrutiny
** Tax enforcement could slow demand for savings-oriented and high-cash-value life insurance products used for wealth planning, potentially weighing on future sales growth, the report said
** Including the session's losses, PRU shares have fallen ~15% so far this year; STAN is up ~16.3% and HSBA has gained ~26.6% over the same period
(Reporting by Anushka Chourasia in Bengaluru)