China Mulls Dividend Tax Waiver on Hong Kong Stocks Connect.

China is considering exempting individual investors from paying dividend taxes on Hong Kong stocks purchased through Stock Connect. Regulators in China are reviewing a proposal submitted by Hong Kong to waive the 20% tax on dividends from Hong Kong stocks bought through the link to Shanghai and Shenzhen. The aim of the proposal is to avoid double taxation and create fairer arrangements for investors in both Hong Kong and China. The decision is still pending, and there is no definite timeline for implementation. This proposal comes as Hong Kong seeks to revive its market after a decline in initial public offerings and trading volumes. The move could have a positive impact on the Hong Kong market and support high-yielding sectors such as energy and utilities. However, it is noted that high dividend Hong Kong stocks have not attracted significant attention from mainland Chinese investors in the past. [Extracted from the article]