CICC: If the Hong Kong Stock Connect dividend tax is reduced or exempted, it will boost the investment enthusiasm of the high-dividend sector

On May 10th, China International Gold Research Report believes that if the dividend tax reduction of Hong Kong Stock Connect is implemented, it is expected to further boost the investment enthusiasm of mainland investors for Hong Kong stocks, especially high-dividend-related sectors, boost sentiment in the short term, and help improve the liquidity of the Hong Kong stock market in the long run. We estimate that the total dividend tax collected by the Hong Kong Stock Connect mechanism every year is about 45 billion Hong Kong dollars. Assuming that the proportion of mainland individual investors investing in Hong Kong Stock Connect is about 1/4, we expect that the annual direct tax reduction brought about by this potential adjustment is about 10 billion Hong Kong dollars. If public funds are also included, the possible tax reduction may be extended to about 20 billion Hong Kong dollars. < br > < img src = "https://flash-scdn.jin10.com/6d5046d6-a823-4d52-a79a-31329e66ad09.png" referrerpolicy = "no-referrer" >