Hong Kong opening up bond market to Chinese investors, finance minister says, as he calls move ‘exciting development’
- Financial Secretary Paul Chan reveals plan in the latest webinar of our Redefining Hong Kong series
- Chan also outlines details of property taxes review with focus on topics including buy-to-let market and charging different rates depending on building’s value
Chinese investors could tap into Hong Kong’s bond market as early as this summer, the city’s finance minister revealed on Thursday, as he outlined his plan to review property tax.
Financial Secretary Paul Chan Mo-po said the review would focus on topics including applying different charges to properties of different value, and having those who bought just for rental income pay more tax.
On introducing the controversial 30 per cent rise in stamp duty, he said the government would continue to monitor the market, and maintaining its competitiveness had always been officials’ main consideration.
In the latest webinar of the Redefining Hong Kong series organised by the South China Morning Post, Chan said the southbound trading of the Bond Connect scheme was expected to be launched as soon as “the early second part of this year”.
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Hong Kong financial secretary on Bond Connect, taxes and US-China relations
Launched in 2017 as part of Beijing’s move to further open up its onshore bond market to foreign investors, the Bond Connect scheme is a joint venture that allows foreign investors easier access to the mainland’s vast onshore bond market through Hong Kong, via the so-called northbound channel.
