Mainland Chinese investors still buying Hong Kong insurance policies after tax pivot: AIA
AIA sees value of new business rise 10 per cent year on year to record high of US$3.21 billion in the first half
AIA Group, Asia’s largest independent, publicly listed life insurance group, says that Beijing’s recent pivot on policies and tax issues relating to offshore investment has not hurt the sales to mainland Chinese visitors in Hong Kong, with purchases steady from May to August, according to a senior executive.
“Since May, when news was released regarding controls and tax levies, we haven’t seen any change in demand from mainland visitors to Hong Kong. The demand from these clients from May to August has remained stable,” said Jacky Chan, AIA Group’s regional CEO and group chief distribution officer, on Thursday.
“Sales to mainland Chinese customers in Hong Kong in the second quarter were even better than the first, with June being the best month,” he added.
“The policy was not new and was not targeting insurance sales in Hong Kong,” Chan clarified. “All overseas investment gains by mainlanders have always been subject to paying tax in China.
“Demand for Hong Kong insurance from mainland visitors is still very strong, driven by the need to diversify global investments, including within the insurance sector. I expect sales will keep up with the demand in the future,” he said.