stock markets

Hong Kong expects to earn $4.5 billion from trading fees

Reuters
Hong Kong expects to earn $4.5 billion from trading fees

HKD. A Hong Kong dollar note is seen in this illustration photo, May 31, 2017.

File photo by Thomas White/Reuters

Both buyers and sellers of securities listed in Hong Kong are required to pay 0.1% of the value of transactions, though certain products are exempt

The Hong Kong government estimates it will earn HK$35 billion ($4.52 billion) in revenue in the current financial year from the 0.1% “stamp duty” charged on stock transactions as a result of high trading volumes, a minister told lawmakers.

The HK$33.23 billion earned from the levy in the 2019-2020 financial year ended March 31, 2020, accounted for about 5% of government revenue, Christopher Hui, Hong Kong’s secretary for financial services and the treasury, said in a written response to a question from a lawmaker.

Average daily turnover for securities traded in Hong Kong was 49% higher in the 2020 calendar year than a year earlier, according to stock exchange data, aided by coronavirus-driven sharp market volatility. The local benchmark hit a 20-month high last month.

Both buyers and sellers of securities listed in Hong Kong are required to pay 0.1% of the value of transactions, though certain products, such as exchange traded funds, are exempt.

Other major global trading centers such as the United States and Japan do not charge such a fee.

Hui said the government would continue to examine the rate of stamp duty, given the need to balance government revenue and the competitiveness of Hong Kong’s stock market. – Rappler.com

Add a comment

Sort by

There are no comments yet. Add your comment to start the conversation.