Hong Kong aims to lower stamp fees to bolster the stock market

 Hong Kong aims to lower stamp fees to bolster the stock market

In an attempt to make one of Asia's major stock markets more competitive, Hong Kong will drop its stamp duty on stock transactions and bourse market data fees.

In his annual policy speech on Wednesday, Hong Kong Chief Executive John Lee announced a reduction in stamp duty on stock transfers to 0.10% of the trade's value for both the buyer and seller from the existing 0.13%.

By the end of November, according to the official, legislative processes for the change will be finished.

According to Mr. Lee, a thriving stock market is essential to sustaining Hong Kong's standing as a major global financial hub and our competitiveness.

Later this year, the Hong Kong Exchange would also reduce certain market data prices and examine the pricing for its real-time data services, he said. With market discussions to take place in the second quarter of 2024, the bourse and financial authorities also want to examine lowering minimum trading margins.

In the first quarter of the following year, the local exchange will also introduce new listing regulations for businesses with an emphasis on research and development.

The chief executive said that his government would continue to push for the inclusion of yuan counters beneath the Southbound Trading of Stock Connect to ease the trading of Hong Kong stocks in yuan in an effort to support the offshore yuan industry.

In order to reinforce Hong Kong's position as an offshore RMB center, he stated, "We will move forward with the official launch of offshore Mainland government bond futures as well as enrich the variety of RMB investing products."