Hong Kong has not ruled out lowering stamp duty on securities trading, finance chief says after earlier warning move could backfire

Hong Kong has not ruled out lowering the stamp duty on securities trading to boost the stock market, the city’s finance chief has said just a day after warning that such a move could backfire.

Financial Secretary Paul Chan Mo-po on Monday also stressed that “multiple efforts” on aspects such as the listing and trading of stocks were needed to improve the competitiveness of the city’s bourse, instead of solely relying on a stamp duty cut.

“That is why we set up a task force to mainly study how to enhance stock market liquidity,” he told a local forum, referring to a new 13-member panel expected to meet for the first time this week.

Chan’s comments came a day after he warned on his weekly blog that reducing stamp duty might not resolve market woes in the long run, saying any piecemeal stimulus measures could risk further weakening investors’ confidence.

The finance chief on Monday said the main message of his post was that more solutions other than lowering stamp duty had to be considered.

“But we have not ruled out the option of adjusting the stamp duty. I hope there are no misunderstandings about that,” he told the forum on mainland China’s macroeconomy and the integration of Greater Bay Area cities.

Hong Kong raised stamp duty on the trade value for buyers and sellers on all share transactions by 30 per cent to 0.13 per cent in 2021.