Hong Kong-listed shipping companies could be a major beneficiary of a potential tax break by Chinese authorities aimed at reviving investor interest in the former UK colony’s stock exchange.

China is reportedly considering a proposal to exempt Chinese investors from paying dividend taxes, currently 20% on Hong Kong stocks bought via the Stock Connect.

“If it materialises, we see this policy change as a major positive for Hong Kong stocks available on the Stock Connect, especially those offering high dividend yields,” said UOB Kay Hian lead regional logistics and transportation analyst Roy Chen.