According to the website of the Hong Kong Financial Secretary’s Office, Hong Kong’s Financial Secretary Chen Maobo released the 2021-22 Budget on February 24. Chen Maobo said that after fully considering the impact on the securities market and international competitiveness, he decided to submit a bill to adjust the stock stamp duty rate, from the current buyer and seller each paying 0.1% of the transaction amount to 0.13%. The government will continue to implement various measures to develop the securities market and develop Hong Kong’s financial industry to a higher level.

The Hang Seng Index of Hong Kong stocks expanded in the afternoon and fell to 2.8%. As of press time, the Hang Seng Index reported 29814.131, down 818.510, or -2.67%.

Last year the economy was not good. More and more people came to the village to play mahjong, and young people stopped working hard. The village chief thought for a long time, and felt that he had to take care of these people. It just so happened that the village spent a lot of relief on the villagers last year, and a lot of white sticks should be paid back. Decided to increase the fee for playing mahjong from one cent per game to one cent. The villagers who play mahjong must not be happy, many people just quit, saying that they would go to the next village to play mahjong. The chess and card room in the beautiful village next door is pretty good at doing business, and immediately announced the reduction of mahjong fees from one cent to nine cents per game. This rise and fall has indeed attracted many young people. The Mahjong stall at the entrance of the village is indeed deserted a lot. But within two days, the people who went to the next village to play mahjong came back silently, and the village entrance resumed its excitement. When I asked them, they just said in a low voice that the mahjong game in the next village was different, and it was too far away. It took several hours to get there every day, and when they arrived there, they were about to close their stalls. On the way back to the village, they suddenly figured it out. Anyway, when they are lucky, a game of mahjong can earn dozens of them. It is not a big deal to pay the village a few cents.

zhiwo

By zhiwo

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helpmekim
8 months ago

Public data shows that in the past three years, stock stamp duty income has exceeded 30 billion Hong Kong dollars. In 2017-2018, 2018-2019 and 2019-2020, stock stamping income was 36.9 billion Hong Kong dollars, 33.1 billion Hong Kong and 33.2 billion Hong Kong dollars, respectively. Take the previous year as an example, stock stamp duty accounted for about 5% of government revenue. Historical Hong Kong stamp duty adjustments According to the Hong Kong Inland Revenue Department, the Hong Kong stock stamp duty rate has shown a continuous downward trend since 1993: from April 1, 1993 to March 31, 1998, the tax rate was 0.15%; April 1, 1998 From April 6, 2000, the tax rate was reduced to 0.125%; from April 7, 2000 to August 31, 2001, the tax rate was reduced to 0.1125%. Since September 1, 2001, the tax rate has dropped again to 0.1%, and it is still in use today.

heloword
8 months ago

Currently this is just a proposal! But the market is already excited. The Hong Kong government stated that the increase in stock stamp duty will be included in the government’s budget, from 0.1% to 0.13%, but it will take effect after the final bill is passed. Hong Kong stocks are the hot spot for investment this year. After the epidemic, the world is releasing water. Global funds are looking for high-quality targets. China’s economy is thriving and has become a gathering place for high-quality assets. The Hong Kong stock market is the best market for global funds to invest in Chinese assets. Coupled with the large-scale entry of domestic funds from the south, many domestic star IPO companies are lining up on the Hong Kong Stock Exchange to prepare for listing in Hong Kong. At this hot time, the addition of stamp duty can cool the market and contribute to Hong Kong’s fiscal deficit. Reduce the effect. After all, affected by the epidemic, Hong Kong’s economy has been bad. In the fiscal year 2021-2022, Hong Kong’s budget deficit rate may reach the second highest level since 2002, and the current fiscal reserves of the Hong Kong government have fallen to 800 billion.

helpyme
8 months ago

Stamp duty accounts for 88% of the transaction costs of Hong Kong stocks. An increase of nearly 30% in the tax rate will result in a significant increase in the transaction costs of southbound transactions. The total tax paid for transactions is 0.26%, which is much higher than 0% for US stocks, 0.1% for A shares, and 0.2% for Singapore. It still has a certain impact on the market, but the follow-up trend of Hong Kong stocks depends on the US market to a greater extent. Recent inflation expectations have led to a sharp increase in U.S. Treasury bond yields, which has weakened investors’ interest in high-risk assets such as the stock market, and global markets have fluctuated significantly. Last night, US stocks fell collectively after the market opened, but after Fed Chairman Powell reiterated the easing policy, the market reversed and the Dow and S&P 500 index closed slightly higher. Today, Hong Kong stocks will increase stamp duty and US stocks will reduce their fee rates. The US Securities Regulatory Commission has just announced that starting from February 25, 2021, the US Securities Regulatory Commission’s fee (charged for sell orders only) will be reduced from 0.00221% to 0.00051%. Let’s see how the U.S. stocks perform tonight…

sina156
8 months ago

The Hong Kong Stock Exchange said it was “disappointed” by the decision. A HKEx spokesperson said: We are disappointed with the government’s decision to increase stamp duty on stock transactions, but we understand that this tax is an important source of government revenue. The Hong Kong Stock Exchange will work closely with all stakeholders to continue to promote the continued success of the Hong Kong capital market and maintain resilience, competitiveness and attractiveness. At the same time, the Hong Kong Stock Exchange (00388) stock price fell sharply today, dropping more than 12% during the intraday session, the biggest one-day drop since 2015. As of the close, the Hong Kong Stock Exchange closed down 8.78%, the stock price was 509 Hong Kong dollars.

yahoo898
8 months ago

Looking back at history, since 1993, the Hong Kong stock stamp duty rate has shown a continuous downward trend: from April 1, 1993 to March 31, 1998, the tax rate was 0.15% from April 1, 1998 to April 6, 2000, the tax rate From April 7, 2000 to August 31, 2001, the tax rate was reduced to 0.1125%. Since September 1, 2001, the tax rate has dropped again to 0.1%, and it has been used today. Transaction stamp duty is a means for the government to increase tax revenue. The increase in stamp duty should also be one of the means by the Hong Kong government to ease the impact of the epidemic and adjust revenue.

leexin
8 months ago

The epidemic has caused great harm to a free-port economy like Hong Kong. It has been more than a year since the customs was closed, a large number of small and medium-sized enterprises have closed down, and the unemployment population has been rising. In order to fight the epidemic, 10,000 yuan was distributed last year, and 5,000 consumer coupons this year. The income is small and the expense is high, no one can stand it. So, I thought of increasing taxes. The Hong Kong government believes that there is no room for increasing profits tax and salaries tax, and the land is not easy to sell, so it decided on the other two taxes. Today, not only is it necessary to increase stock stamp duty, but also that the property tax will be changed to a progressive tax rate system, and people with more houses will pay more. The latter is very difficult to me. This is the rhythm of splitting the fields with the rich.

greatword
8 months ago

On February 24, the news that Hong Kong will raise stamp duty on stock transactions shocked the market. On the same day, Hong Kong’s Financial Secretary, Chen Maobo, submitted to the Legislative Council in the “Government Budget for 2021/22” that in order to increase government revenue, the stock stamp duty rate will be increased from the current 0.1% to both the buyer and the seller to 0.13. %. Affected by this news, Hong Kong stocks experienced greater volatility. The Hang Seng Index fell more than 3%, the Hong Kong Stock Exchange once fell 12%, and related brokerage stocks also fell.

loveyou
8 months ago

Chen Maobo stated in the “Government Budget” that in order to increase revenue, after fully considering the impact on the securities market and international competitiveness, he decided to submit a bill to adjust the stock stamp duty rate from the current buyer and seller to 0.1% of the transaction amount. 0.13%. The government will continue to implement various measures to develop the securities market and develop Hong Kong’s financial industry to a higher level. The current 0.1% securities stamp duty rate has been implemented since September 1, 2001. Prior to this, the rate has been reduced three times. From April 1, 1993 to March 31, 1998, the Hong Kong securities stamp duty rate was 0.15% of the transaction amount; from April 1, 1998 to April 6, 2000, the stamp duty rate was reduced to 0.125%; April 2000 From 7th to August 31st, 2001, the stamp duty rate dropped again to 0.1125%.

strongman
8 months ago

The adjustment announced by Chen Maobo raised the Hong Kong stock stamp duty rate by 30% in one fell swoop, but it has not exceeded the original 0.15% level. After the news came out, Hong Kong stocks plummeted. The Hang Seng Index fell more than 3% at one time, and the Hang Seng Technology Index also fell more than 6%. As of the close, the Hang Seng Index fell 2.99%, and the Hang Seng Technology Index fell 5.1%. The news also dragged down the Hong Kong stock brokerage sector. As of the close, Yaocai Securities (01428) fell nearly 6%, Guotai Junan International (01788) fell 8.44%, and Haitong International (00665) fell 4.8%. The most affected is the Hong Kong Stock Exchange. Today, the Hong Kong Stock Exchange’s share price fell as much as 12%, and the share price fell below 500 Hong Kong dollars. As of the close, the Hong Kong Stock Exchange closed down 8.78%. Coincidentally, the Hong Kong Stock Exchange just announced its 2020 full-year results today. During the reporting period, the average daily turnover of its equity securities products was HK$110.9 billion, an increase of 60% over 2019. In 2020, the total annual income and other income of the Hong Kong Stock Exchange reached 19.2 billion Hong Kong dollars, an increase of 18% over 2019.

stockin
8 months ago

The increase in the stamp duty rate is related to the decline in Hong Kong’s economy and fiscal revenue. Hong Kong’s overall economy contracted sharply by 9% in the first half of last year and improved slightly in the third quarter. However, it has been hit by the epidemic since the latter part of the fourth quarter. The economy contracted 6.1% last year, the largest annual decline on record, and it was also the first consecutive two-year negative growth in Hong Kong. Chen Maobo predicts that the Hong Kong economy will return to positive growth this year, but the recovery process will depend on the development of the epidemic. It is predicted that the actual economic growth this year will be between 3.5% and 5.5%. In terms of public finances, after 15 years of surplus, Hong Kong will have deficits year after year. In 2020/21, the Hong Kong government expects a deficit of 257.6 billion Hong Kong dollars; in 2020/22, the estimated deficit is 101.6 billion Hong Kong dollars, which is equivalent to 3.6% of GDP. The main reason for the deficit is the introduction of countercyclical fiscal measures and the continuous increase in current expenditure. . It is estimated that from 2022/23 to 2025/26, there will be continuous deficits because the growth of government expenditure (especially current expenditure) is faster than income growth.

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