News of taxation on offshore insurance policies weighed on financial and property stocks; Hang Seng Index fell 385 points. ChinaAMC Asia High Dividend ETF rose slightly even amid the market decline, drawing attention.

Ongoing progress in U.S.-Iran negotiations continued to support overseas markets, with the Dow Jones hitting a new record high. However, Hong Kong stocks were dragged down by news that mainland China plans to impose a 20% personal income tax on returns from offshore insurance policies. Insurance, banking, and property stocks came under significant pressure. The Hang Seng Index opened 248 points lower, with losses widening to an intraday low of 25,389 points—down over 520 points—breaking below both the 250-day and 10-day moving averages. In the afternoon, some financial stocks pared their losses, helping the index recover part of its earlier decline. The Hang Seng Index closed at 25,530 points for the day, down 385 points or 1.49%, with main board turnover reaching HK$255.2 billion. The Hang Seng China Enterprises Index closed at 8,498 points, down 105 points or 1.22%. The Hang Seng Tech Index ended at 4,820 points, down 112 points or 2.28%. Southbound capital recorded a net outflow of approximately RMB 1.46 billion, marking the second consecutive day of outflows.

Insurance stocks were the primary source of selling pressure today, as market rumors circulated that mainland tax authorities have started imposing a 20% personal income tax on returns from offshore insurance policies, covering dividend distributions and interest generated from prepaid premiums. Investors are concerned about the potential impact on the attractiveness of Hong Kong insurance products. AIA (1299) dropped 5.92% to close at HK$73.15, making it the worst-performing blue chip. FWD (1828) fell 5.59% to HK$29.72; Prudential (2378) declined 4.57% to HK$108.5; and Manulife (0945) slipped 2.11% to HK$343. Banking stocks also weakened, with HSBC (0005) down 1.23% to HK$160.1; Bank of China (Hong Kong) (2388) falling 0.49% to HK$50.4; Bank of East Asia (0023) dropping 0.4% to HK$16.39; while Standard Chartered (2888) bucked the trend with a slight gain of 0.17%, closing at HK$234.4.

In addition to insurance stocks, this regulatory news—combined with heightened expectations of interest rate hikes—also weighed on local property stocks. Sun Hung Kai Properties (0016) fell 4.68% to close at HK$116; Hang Lung Properties (0101) dropped 3.47% to HK$7.38; CK Asset Holdings (1113) declined 2.86% to HK$46.8; Henderson Land (0012) slid 2.76% to HK$27.48; and New World Development (0017) fell 2.8% to HK$6.715. Only Wharf Real Estate Investment Company (1997) stood out: it reported a 6% year-on-year increase in underlying net profit for the first half and significantly raised its dividend payout ratio from 65% to 90%, resulting in a 42.4% year-on-year increase in interim dividends to HK$0.94 per share. Its share price surged as much as 32% intraday and closed up 13.72% at HK$30, hitting a near three-year high and becoming the best-performing blue chip of the day.

Major tech and internet stocks broadly declined along with the market today, with Alibaba ( $BABA-W (09988.HK)$ 9988) down 2.89% to close at HK$124.4; $XIAOMI-W (01810.HK)$ Xiaomi (1810) falling 2.82% to HK$26.86; Tencent ( $TENCENT (00700.HK)$ Kuaishou (1024) fell 2.64% to close at HK$479.2; $KUAISHOU-W (01024.HK)$ JD.com (9618) dropped 2.73% to HK$44.24; $JD-SW (09618.HK)$ Meituan (3690) declined 2.08% to close at HK$127.3; $MEITUAN-W (03690.HK)$ Baidu (9888) fell 0.91% to close at HK$92.2; $BIDU-W (09888.HK)$ Baidu (9888) dropped 4.38% to close at HK$107.1. AI-related stocks showed mixed performance, with MiniMax $MINIMAX-W (00100.HK)$ (0100) surging 17.1% after being added to Stock Connect, closing at HK$297.2; Zhipu $Z.AI (02513.HK)$ (2513) rose 4.42% to close at HK$1,087; XunCe $XUNCE (03317.HK)$ (3317) fell 5.22% to close at HK$129. Chip stocks remained under pressure, with SMIC $SMIC (00981.HK)$ (0981) down 3.9% to close at HK$65.35; Hua Hong Semiconductor $HUA HONG GRACE (01347.HK)$ (1347) fell 3.39% to close at HK$136.7; Montage Technology $MONTAGE TECH (06809.HK)$ (6809) fell 3.48%, closing at HK$261; Tianshu Zhixin $ILUVATAR COREX (09903.HK)$ (9903) dropped 7.06%, closing at HK$450.

Solar stocks were dragged down by news that the U.S. plans to impose additional tariffs on polysilicon products. Xinyi Solar $XINYI SOLAR (00968.HK)$ (0968) declined 2.73%, closing at HK$2.32; GCL Technology $GCL TECH (03800.HK)$ (3800) fell 3.6%, closing at HK$0.67. Elsewhere, CATL ( $CATL (03750.HK)$ 3750) dropped 5.05%, closing at RMB628; Geely Auto $GEELY AUTO (00175.HK)$ (0175) fell 4.48%, closing at HK$18.56; BYD $BYD COMPANY (01211.HK)$ (1211) declined 4.21%, closing at HK$89.85; Li Auto $LI AUTO-W (02015.HK)$ (2015) dropped 3.02%, closing at HK$49.12.

In contrast, Techtronic Industries $TECHTRONIC IND (00669.HK)$ Laopu Gold (0669) saw its target price raised by UBS Group, rising 1.04% to close at HK$145.30, hitting a record high; $LAOPU GOLD (06181.HK)$ Chow Tai Fook (6181) rose 3.23% to close at HK$351.20; $CHOW TAI FOOK (01929.HK)$ Chow Tai Fook (1929) climbed 3.79% to close at HK$12.31; Cathay Pacific Airways ( $CATHAY PAC AIR (00293.HK)$ 0293) had its target price raised by UBS Group, gaining 2.3% to close at HK$15.14, reaching a record high; Zhongji InnoLight $ZJ INNOLIGHT (03308.HK)$ (3308) received an increased stake from Goldman Sachs, rebounding 3.14% to close at HK$1,151, after earlier touching an intraday high of HK$1,249—the highest since its H-share listing.

Hong Kong stocks were weighed down today by news of taxation on offshore insurance policies, with the Hang Seng Index closing at 25,530 points. Harvest Asia High Dividend Equity ETF ( $ChinaAMC Asia High Dividend ETF (03145.HK)$ 3145) closed at HK$14.99 today, up 0.067%, showing relative stability amid today’s market decline. The fund tracks the Bloomberg Asia Pacific High Dividend Yield 40 Index, selecting companies from Asian markets with high expected dividend yields and solid profitability, covering Hong Kong, mainland China, Southeast Asia, South Korea, and Taiwan. Its holdings are primarily in mature sectors such as banking, telecommunications, energy, shipping, and consumer goods, using geographic and sector diversification to mitigate the impact of volatility in any single market. The ETF will go ex-dividend on August 12, distributing HK$0.10 per unit. Positioned for monthly distributions, the ETF has consistently paid HK$0.10 per unit over recent months, fully sourced from distributable net income rather than capital. The fund targets an annualized distribution yield of 8%, though this is not guaranteed and actual payouts may vary depending on the fund’s net asset value, investment income, and market conditions. While financial, insurance, and property stocks in Hong Kong were broadly under pressure today, the ETF still managed a slight gain, reflecting how its pan-Asian allocation helps buffer against single-market risks. However, investors should note that high-dividend ETFs are not principal-protected products—their prices still fluctuate with equity markets, and distribution amounts may be adjusted based on market conditions.

@孫子的末代傳人 @中戶變大戶小牛變大牛 @股海GSO

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