British insurer Prudential shares fell more than 10% in early June 2026, bringing their total decline to approximately 19% since late May announcements of new Chinese tax restrictions on insurance purchases in Hong Kong by mainland customers. These measures, linked to Decree 837 enacted in late May 2026, aim to curb capital outflows by making cross-border financial activity more expensive and more visible to Chinese tax authorities. Approximately 17% of Prudential’s group new business profit comes from insurance policies sold in Hong Kong to mainland customers. Other banks such as Standard Chartered and HSBC were also affected, with declines of 13% and 8% respectively. Analysts at JPMorgan and UBS suggested the share price plunge may be disproportionate relative to the actual impact of the new regulations.
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