Glonghui, May 10 | Lyon issued a report saying that the China Securities Regulatory Commission and the State Administration of Taxation are reviewing a plan submitted by Hong Kong to exempt Hong Kong Stock Connect dividends from 20% profits tax. Although the bank is currently unclear whether the relevant proposal will be approved by the authorities, the bank believes that such tax relief may help the valuation of H shares recover and will increase the overall average daily turnover of Hong Kong stocks with minimal growth in the average daily turnover of Hong Kong stocks. According to the bank, the expansion of the Hong Kong Stock Exchange's connectivity with the Middle East may help introduce more capital flows. Lyon also reminds investors to be aware of the risk of short-term excessive adjustments in the Hong Kong Stock Exchange, but a recovery in daily trading trends, favorable capital flows, and smooth policy may also indicate a further increase. Lyon said it will maintain the Hong Kong Stock Exchange's “buy” investment rating and target price of HK$285.
大行评级｜里昂：若免收港股通股息利得税助H股估值回升 维持港交所“买入”评级
Bank Ratings | Lyon: If the Hong Kong Stock Connect dividend profits tax is exempt, the valuation of H shares will recover and maintain the “buy” rating of the Hong Kong Stock Exchange
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