The Shenzhen - Hong Kong Stock Connect (SZ-HK Stock Connect) has been launched on 5 December 2016. It is modelled after the Shanghai - Hong Kong Stock Connect (SH-HK Stock Connect) and offers more opportunities for investors to invest in the China stock markets. The Ministry of Finance ("MOF"), the State Administration of Taxation ("SAT") and China Securities Regulatory Commission ("CSRC") jointly released CaishuiNo.127 on 2 December 2016 to clarify the China tax policies in relation to the SZ-HK Stock Connect. These China tax policies are similar to those for the SH-HK Stock Connect. We hereby summarise the major China tax and Hong Kong tax issues which investors of both sides should be aware of when making investment via this new investment channel.