Huatai Securities: The re-imposition of value-added tax on interest from government bonds and other securities has limited impact on insurance assets.

Huatai Securities research report stated that on August 1st, the Ministry of Finance and the State Administration of Taxation issued the "Announcement on the Value-Added Tax Policy on Interest Income from National Bonds and Other Bonds", starting from August 8, 2025, interest income from newly issued national bonds, local government bonds, and financial bonds will resume value-added tax collection, ending the previous phase of policy incentives. Insurance funds investing in government bonds were previously exempt from value-added tax and income tax on interest income. This time, the collection of value-added tax on newly issued government bonds and other bonds is resumed, while the income tax on government bonds remains exempt. Huatai Securities estimates that the impact on the yield of new government bonds and financial bonds is approximately 12 basis points, with an annual impact on the overall net investment yield of approximately 2 basis points, with limited impact.