Stamp duty waiver gazetted

2020-05-21 08:56:37

The Government proposed legislative amendments on the stamp duty today.

The move aims to waive the stamp duty on stock transfers involving the activities of exchange traded fund (ETF) market makers in the course of allotting and redeeming ETF units listed in Hong Kong.

Secretary for Financial Services & the Treasury Christopher Hui said that by reducing the transaction cost of ETFs listed in Hong Kong, the new initiative will spur the development of the ETF market and drive the depth and liquidity of the securities market, thereby reinforcing Hong Kong's position as an international financial centre.

"I am pleased to see the Hong Kong Exchanges & Clearing Limited's similar efforts in introducing further measures to lower the transaction cost of ETFs traded in Hong Kong.

?I am confident that with our concerted efforts, we will be able to attract more ETFs to list on our market and develop Hong Kong as an ETF hub of choice in the region."

In the 2020-21 Budget, the Financial Secretary announced the new initiative of waiving the stamp duty on stock transfers for primary market ETF activities. The stamp duty for trading ETF in the secondary market in Hong Kong has been waived since 2015.

The Stamp Duty Ordinance (Amendment of Schedule 8) Regulation 2020 was gazetted today. It will be tabled at the Legislative Council on May 20 for negative vetting and come into effect on August 1.

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