European Champions League: Whether the future adjustment of stock stamp duty depends on the Hong Kong Special Administrative Region Government
Oscar Sheng, at the HKEX semi-annual media briefing, stated that the previous increase in stock stamp duty has boosted the tax revenue for the Hong Kong SAR government, serving as a measure to increase income during the pandemic prevention and control period. Whether the stock stamp duty will be reduced in the future depends on the Hong Kong SAR government.
According to Dolphin Research's APP, on August 16th, HKEX released its semi-annual report, which showed that the average daily turnover of the Hong Kong stock market in the first half of the year was HKD 115.5 billion, a YoY decrease of 16%. There is a growing call for reducing or exempting the stock stamp duty, as it is believed that it is necessary to restore liquidity and enhance the attractiveness of the regional market by adjusting the stock stamp duty.
On August 9th, the Hong Kong Securities and Futures Professionals Association publicly recommended "repealing the stock stamp duty". Ou Guansheng, the Chief Executive of HKEX, stated at the semi-annual media briefing that the previous increase in the stock stamp duty had increased the tax revenue of the Hong Kong SAR government, which was a measure taken to increase revenue during the epidemic prevention and control period. Whether the stock stamp duty will be reduced in the future depends on the Hong Kong SAR government.
Ou Guansheng said that we will continuously seek various ways to ensure that our market is thriving, thereby enhancing the competitiveness and attractiveness of the Hong Kong stock market. We will improve various infrastructures and serve market participants, but reducing the stamp duty is not within our jurisdiction.
Yan Zhaojun, an analyst at Zhongtai International Strategy, said that the trading stamp duty in the Hong Kong stock market is much higher than that in the A-share market and the US stock market. The most direct impact is the outflow of funds from the Hong Kong stock market, which is transferred to lower-cost markets such as the US stock market and A-share market, resulting in a lack of liquidity and trading depth in the Hong Kong stock market. If the stamp duty is repealed or reduced, it can increase high-frequency trading, attract the inflow of quantitative funds, and improve the liquidity and market depth of the Hong Kong stock market, thus invigorating the capital market.