Hong Kong Stock Connect needs to pay a certain stamp duty when it is sold. At the same time, for dividend-paying Hong Kong Stock Connect, 20% personal income tax is required when it is sold.

For example, the dividend of mainland investors in Hong Kong stocks is 100 yuan, but the actual dividend of Hong Kong stocks is 100×0.8 = 80 Hong Kong dollars, which is equivalent to a 20% discount on the dividend income of investors.

Among them, the dividends of Hong Kong stocks in the Hong Kong Stock Connect will be settled by the Hong Kong market, and then the investors' dividend funds will be sent to the China settlement institution for processing.