Stamp Duty Bill Approval Welcomed
The Stamp Duty (Amendment) (Stock Transfers) Bill has been passed by the Legislative Council today. The government welcomed the approval of the stamp duty bill, as it offers investors a better opportunity to continue investing in Hong Kong. The amendment is part of the measures the Task Force recommends for Enhancing Stock Market Liquidity. The matter was first announced in the 2023 Policy Address, and the approved reduction rate is 0.1%.
The previous rate was 0.13%. The government further explained that reducing the stamp duty would lower investors’ transaction costs, improve market sentiment, and boost Hong Kong’s stock market competitiveness. The rate restored to 0.1% will reduce investors’ transaction costs. It can help attract more enterprises to list in Hong Kong, increase market capitalisation, and uphold Hong Kong as the preferred global financial hub.
To promote sustainable stock market development, the SAR government will further work with financial regulators, including the Hong Kong Exchanges and Clearing, on other measures proposed by the Task Force to Enhancing Stock Market Liquidity.
The amendment ordinance was published in the Gazette on 16 November and will take effect on 17 November.
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The approval of the Stamp Duty Bill is yet more good news for investors looking to venture into Hong Kong. You can contact 3E Accounting for expert help to incorporate a company in the region.