Hong Kong Financial Secretary Paul Chan unveiled several capital market reform initiatives in the latest budget, with the goal of improving market liquidity and attracting more funds to HK. Speaking on a radio program today (Feb. 27), Chan stated that reducing stamp duty on stock transactions is not the primary method to boost stock market activity.
Chan noted that recent trading activity in the stock market has remained robust even without changes to the current stamp duty rate. He further stressed that research conducted by authorities indicates no direct correlation between stamp duty levels and trading volumes.
Instead, Chan highlighted the importance of attracting more mainland and Southeast Asian companies to list in HK, as well as securing foreign investment, as more effective means of supporting the stock market. He cited the example of two HK stock-tracking ETFs being listed on Saudi Arabia's stock exchange at the end of last year, showcasing the continued appeal of HK's financial market. He reaffirmed the government's commitment to advancing such efforts.
In addition, Chan pointed out the success of the Consensus HK conference, which focused on virtual assets, as a demonstration of HK's leadership in the sector. He emphasized that HK leverages its reputation as an international financial center and the strength of its top-tier regulatory framework to boost investor confidence and inject vitality into the market.
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