Paul Chan: no further stamp duty cuts on stock transaction

Financial Secretary Paul Chan Mo-po said on Friday that stamp duty on stock transactions will not be further reduced unless external conditions undermine Hong Kong's competitiveness.

Chan stated that stamp duty is a crucial component of government revenue, and the increase in stamp duty revenue this fiscal year is primarily driven by the stock market, whereas the stamp duty on property has shrunk significantly due to the unstable market.

The current stamp duty levels are appropriate in terms of trading volume and competitiveness, while those of new fields like Real Estate Investment Trusts and Exchange Traded Funds will be more lenient, he said at the special meeting of the Finance Committee of the Legislative Council.

He also noted that the government has previously provided subsidies to some small and medium-sized securities firms through Hong Kong Exchanges and Clearing (0388) to cover compliance costs and IT investments.