China is reportedly considering a proposal to exempt individual investors from paying dividend taxes on Hong Kong stocks purchased through the Stock Connect, aiming to avoid double taxation and enhance liquidity in the Hong Kong market. This potential policy change has positively impacted the stock markets, with significant gains in major indices and companies. The Shanghai Composite Index and Hang Seng Index have seen substantial increases, with the former entering a technical bull market after a 20% rebound from its recent low. Hong Kong Exchanges and Clearing Limited also experienced a notable rise, jumping 3.5% and surging up to 8% on the news of the potential tax waiver. Additionally, the Hang Seng Index opened up 0.71%, and the Tech Index increased by 0.72%. The average daily turnover (ADT) of Hong Kong stocks has shown significant growth, potentially increasing by 4% due to the tax exemption.