China's tax dragnet rattles market as offshore trusts, insurance targeted

Wealth ManagementHong Kong insurer and bank shares drop sharply on signs of widening enforcementSkyscrapers in Hong Kong, including AIA Central and the HSBC building, are seen through a fence at sunset. © ReutersLORRETTA CHEN and CISSY ZHOUAugust 6, 2026 17:53 JSTHONG KONG -- Shares of insurance companies and banks dro

Chinese mainland tax authorities have reportedly started levying personal income tax on returns from offshore insurance policies, the latest sign of greater scrutiny of offshore investments.

Prudential shares tumble on report China will tax offshore insurance returns  Reuters

Beijing's move to tax offshore trusts, long used by China's ultra-rich to hold money, has set off a rush to lawyers and a scramble for cash.

China’s Ministry of Finance is set to raise 15 billion yuan (US$2.22 billion) through a sovereign bond auction in Hong Kong, tapping international capital just days after the city launched a long-awaited tool designed to help global investors hedge against mainland bond market risks. The sale marks the fourth tranche o