On July 4th, the interconnection of ETFs between the Mainland and Hong Kong was officially launched. Mainland investors who open the Hong Kong Stock Connect can purchase four funds: 02800 TraHK Fund (tracking the Hang Seng Index), 02828 Hang Seng China Enterprise, 03033 Southern Hang Seng Technology and 03067 Anshuo Hengsheng Technology.
Northbound funds can also buy 83 A-share ETFs, which are covered by mainstream broad-based indexes and industries. Foreign investors are welcome to buy in buy buy.
On the issue of fund taxation, an announcement was issued this weekend to clearly apply the current tax policy of mutual recognition between mainland and Hong Kong funds, that is, the profits from the difference between trading funds are temporarily exempt from income tax; Individual income tax is levied at 20% on dividends paid by the fund to investors.