The dividend tax of Hong Kong Stock Connect refers to the dividend tax of listed companies listed on Hong Kong Stock Connect. According to the regulations of the CSRC, personal income tax will be levied at the rate of 20% on the income from dividends of Hong Kong stocks. 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.

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 settlement institution in China for processing. China Clearing House will complete the exchange and settlement within three trading days after the full payment of the incentive funds. The dividend amount will be paid on the liquidation date and sent to investors through the detailed settlement documents of Hong Kong Stock Connect.

Dividend tax refers to the tax levied on dividends of listed companies. For long-term investors for more than one year, dividends are temporarily exempted from personal income tax; Double dividend tax is levied on investors who buy and sell short-term within one month. The news that dividend tax is levied in different places is generally regarded as favorable by market participants, who believe that it can encourage long-term investment, curb short-term speculation and promote the long-term healthy development of the capital market.

Hong Kong Stock Connect includes Shanghai Stock Connect and Shenzhen Stock Connect. Hong Kong Stock Connect refers to domestic investors buying and selling Hong Kong stocks through the interconnection channels between Shanghai, Hong Kong and Shenzhen. The Shanghai and Shenzhen Stock Exchanges disclose the net inflow data of Shanghai Stock Connect and Shenzhen Stock Connect in real time every day.