pacmanpocketplayer| Hong Kong stocks have soared! Institutional hot discussion: How big will the impact be?
May 10thPacmanpocketplayerThe Hong Kong stock market rose sharply, and the Hang Seng Index rose 2. 5%.Pacmanpocketplayer.30%, closing close at 19000 points.
On the news side, on May 9, a piece of news about "reducing and waiving the dividend dividend tax for individual mainland investors to invest in companies listed in Hong Kong, China through the Hong Kong Stock Connect" attracted widespread attention. Industry insiders said that the news stimulated the rise of Hong Kong stocks to some extent.
Earlier, Lei Tianliang, chairman of the Hong Kong Securities Regulatory Commission, also proposed to reduce the tax level of dividends and dividends for individual investors and lower the access standards for mainland investors.
What is the tax on dividends in Hong Kong stocks? What is the impact of reducing or reducing the tax on Hong Kong stock dividends? If it hits the ground, which plates will benefit?
What are the main points of the current dividend tax on Hong Kong stocks?
It is reported that mainland investors need to pay dividend tax when they invest in Hong Kong stocks through Hong Kong Stock Connect. Under current standards, mainland investors charge higher dividend tax through Hong Kong Stock Connect than investors who directly open accounts in Hong Kong.
According to Wang Yi, chief strategist at Huatai Securities, the main points of the current dividend tax policy for Hong Kong stocks are as followsPacmanpocketplayer(1) dividends earned by mainland individuals and securities investment funds through Hong Kong Stock Connect investments shall be withheld at a tax rate of 20%; (2) dividends earned by mainland enterprise investors (such as mainland risky capital or industrial capital) through Hong Kong Stock Connect investments shall be included in their total income and shall be subject to enterprise income tax in accordance with the law, but if mainland enterprises hold shares continuously for 12 months, the dividends obtained by mainland enterprises shall be exempted from enterprise income tax.
Wang Yi said that in the current composition of investors in Hong Kong Stock Exchange, individuals, public offerings and private offerings account for about 70%, and this part of the investors may be affected by the bonus and tax policy.
If the adjustment will enhance the liquidity of Hong Kong stocks
If the dividend tax of Hong Kong stocks is adjusted, what will be the impact?
Sources said that the Hong Kong Stock Exchange dividend tax potential adjustment may be more aimed at mainland individual investors.
Liu Gang, chief overseas strategist at China International Capital Corporation, said that the potential direct tax relief may be limited, but the impact may be greater if public funds that essentially represent individual investors are also included in the scope of potential adjustment. If the adjustment is implemented, it is expected to boost market sentiment in the short term and enhance the attractiveness of high dividend investments and the liquidity of Hong Kong stocks in the medium to long term.
China International Capital Corporation estimates that the total amount of dividend tax collected by the Hong Kong Stock Connect mechanism is about 45 billion Hong Kong dollars a year. Assuming that the proportion of mainland individual investors investing in Hong Kong stock exchanges is about 1x4, the direct tax relief from this potential adjustment is expected to be about HK $10 billion a year. If public funds are included, the tax credit could expand to about HK $20 billion. Given that the average daily turnover on the main board of the Hong Kong stock market so far this year is about HK $100 billion, the short-term direct relief from this potential adjustment may be limited, but it will boost investor sentiment.
"in the medium to long term, it will help to boost the attractiveness of Hong Kong stocks with high dividends, enhance the liquidity of Hong Kong stocks, and help some companies to converge at a premium compared with A shares." Liu Gang said that further measures to boost the stock market should not be ruled out next, which may include: reducing transaction costs (reducing transaction commissions); lowering the threshold for investment; widening the scope of investment (appropriately relaxing the entry threshold for Hong Kong shares and continuously optimizing the listing system); innovative product mechanism (optimizing Hong Kong's gem mechanism, setting up a professional board for professional investors, etc.).
The value of high dividends in Hong Kong stocks is expected to continue to show.
If we adjust the landing, how should the Hong Kong stock market be allocated?
Wang Yi said that looking for southward sectors with a high proportion of capital and high dividends in Hong Kong Stock Connect, energy, materials, capital goods, cars and auto parts and banking sectors are worthy of attention.
Liu Gang believes that the value of high dividends in Hong Kong stocks is expected to continue to appear, and it is suggested that the targets of high dividends should be screened from the three dimensions of profitability, dividend ability and dividend willingness.