Bloomberg News: HKEx suspends stamp duty

The first policy address on Wednesday said that the current fiscal reserves of HK $ 1 billion were to be used with wisdom, and that they should be formulated with forward-looking tax policies and measures. The Bloomberg reported yesterday that the HKEx (388) was considering asking the government to reduce the stock stamp duty. A spokesman for the HKEx said the exchange would regularly communicate with the government on different policies, but would not comment on individual reports.

The stamp duty on shares is charged by the Government. According to the Government data, the stock stamp duty for the financial year 2016/17 amounted to $ 23.6 billion. A spokesman for the Financial Services and the Treasury Bureau has responded to inquiries that the stock stamp duty is a stable source of government revenue and that any proposal for the reduction or removal of stock stamp duty must be carefully examined.

At present, both Hong Kong stock buyers and sellers are required to pay 0.1% of the amount of each transaction stamp duty, A shares are only to the seller side charge 0.1%. Sources said the Hong Kong Stock Exchange proposed the program, including the government to reduce the stamp duty to the mainland in line. At present, the daily turnover of A shares is about RMB50 billion, and the daily turnover of Hong Kong stocks is around RMB100 billion. However, before 2013, A-share transactions in the long-term hovering below 200 billion yuan.

Short-term or can stimulate the stock market

Mainland stock market in the past to adjust the stock stamp duty, as a stock market tool. In the early 90s of last century, due to overheated investment, A shares to buyers and sellers impose a stamp duty of 0.6% to suppress the then surge in the stock market. However, as the stock market continued to slump, the stamp duty rate continued to decline from 0.6% to 0.5%, then down to 0.4%, and finally fell to 0.1% in 2008 fell to the market, and only to a single levy.

Tengqi fund management investment management director Shen Qinghong that the implementation of the stamp duty if the short term may be stimulating the stock market, but the long-term role is limited, “the mainland are down Zuo Lu many stamp duty, but A shares have improved, the Shanghai index and home More than three thousand points. ” He said investors to buy stocks mainly to see the prospects for profit, 0.1% of the stamp duty affected slightly. And stamp duty measures are usually introduced in the downturn in the market situation, and now Hong Kong stocks are Wang City, the role is not.

Sun Hung Kai Financial wealth management strategist Wen Jie agreed that even if the Hong Kong stock stamps fell to the same level as the mainland, the North will not play a significant boost. “Mainland people fall into the fried real estate stocks, auto stocks, said the increase is in multiple terms, will not be a small amount of stamps.”