Billions have been wiped off FTSE 100 banks and insurers, including Standard Chartered - Paul Yeung/BloombergBillions have been wiped off FTSE 100 banks and insurers after Beijing launched a tax crackdown on insurance policies sold in Hong Kong. Prudential, HSBC and Standard Chartered – which all make significant sums in Asia – shed nearly £26bn on Wednesday after reports that Chinese tax authorities had started charging income tax on offshore insurance policies. Early enforcement cases in Beijing and Hangzhou reportedly show that policies taken out in Hong Kong have been hit with a 20pc tax. Currently, the dividend and interest earned on Hong Kong insurance policies are tax-free. Beijing wants to close the loophole by charging 20pc on the earnings, bringing Hong Kong into line with the mainland.