Announcements on May 10,$China Mainland Banking (BK1239.HK)$$Mainland Insurance Companies (BK1228.HK)$There was a collective increase in the morning intraday. As of press release,$PSBC (01658.HK)$rose 7.36% to HK$4.52;$ABC (01288.HK)$Up 6.18% to HK$3.78;$CCB (00939.HK)$Up 6.25% to HK$5.61;$ICBC (01398.HK)$Up 4.60% to HK$4.55;$CPIC (02601.HK)$increased by 8.25% to HK$19.68;$MANULIFE-S (00945.HK)$Up 6.35% to HK$199.40;$NCI (01336.HK)$It rose 5.32% to HK$16.64.
According to the news, the General Administration of Financial Supervision recently issued the “Notice Concerning Matters Relating to Commercial Banks' Insurance Agency Business”, which removes restrictions on the number of cooperation between bank outlets and insurance companies, and makes it clear that insurance companies should ensure that they have offline service capabilities within the cooperative region. Ping An Securities pointed out that after the implementation of the “integrated reporting and banking” policy for banking insurance, the regulation will lift the quantitative restrictions on cooperation between bank branches and insurers, which will benefit leading insurers with operating standards and comprehensive advantages.
Furthermore, according to media reports, China is reportedly considering reducing dividend dividend tax on mainland individual investors investing in Hong Kong listed companies through Hong Kong Stock Connect. Sino-Thai International pointed out that if the dividend tax on H shares and red chip stocks can be reduced, it can increase the actual dividend return on domestic investment in Hong Kong stocks. Combined with the lower relative valuation of Hong Kong stocks, it will inevitably attract more long-term domestic capital to enter the Hong Kong stock market. CICC believes that if the Hong Kong Stock Connect dividend tax relief is implemented, it is expected to further boost the enthusiasm of mainland investors to invest in Hong Kong stocks, especially in sectors related to high dividends, boost sentiment in the short term, and help improve the liquidity of the Hong Kong stock market in the long term.