Hong Kong-listed insurance stocks slumped after reports that Chinese tax authorities have begun levying a 20% personal income tax on income earned from offshore insurance policies. The move has raised concerns over demand from mainland Chinese customers, weighing on insurers and financial stocks with significant cross-border exposure.

Chinese mainland authorities have levied a 20% personal income tax on Hong Kong policy dividends and prepaid premium interest in early cases

Prudential shares dropped over 10% after China tightened its tax net on Hong Kong insurance sales, hitting a business line worth 17% of group