The Government will cut the levy investors pay on stock transactions to 0.01 per cent from 0.011 per cent, according to Deputy Secretary for Financial Services Rebecca Lai Ko Wing-yee.
She said the levy-cut would be implemented because Hong Kong Exchanges and Clearing would soon be listed locally.
As a result, 'it is no longer appropriate for the exchange to use the levy to finance its development plans', she told legislators.
'Its shareholders could inject capital to support it to develop new products, or it could issue new shares to raise funds.' At present, the Securities and Futures Commission takes 0.004 per cent of the levy, and the exchange the other 0.007 per cent.
Of the exchange portion 0.001 per cent is placed into a development fund to finance new product development.
The SFC and the exchange would equally share the reduced 0.01 per cent levy, Ms Lai said.
