Financial Secretary Sir Donald Tsang Yam-kuen has approved a $36 million budget surplus for the stock exchange for the coming year.
The exchange is forecasting income of $594 million and expenditure of $552 million between July this year and June 98, a circular sent to broker members said.
It expects to pay $6 million in taxes, leaving it with a $36 million surplus.
Exchange sources said the budget was based on the assumption the 0.013 per cent transaction levy - its main source of income - would not be changed.
The Government has asked the exchange and the Securities and Futures Commission to consider cutting the levy to lower dealing costs, expensive in Hong Kong compared with international rivals.
A source said the chances of a reduction in the transaction levy were high, given heavy turnover in recent months, which has boosted the exchange's revenue.
