Exclusive | Hong Kong ‘to tap financial heavyweights’ for new task force aimed at boosting stock market liquidity, as some experts call for lower stamp duty
- Financial Secretary Paul Chan may announce details of expert group and key areas of focus as early as Tuesday, according to insider
- Source stops short of saying whether lowering stamp duty will be considered, but some experts say move would strengthen bourse’s competitiveness
Financial heavyweights and government officials will be asked to lead a new task force aimed at boosting the turnover of Hong Kong’s sluggish stock market, with details to be revealed possibly as early as Tuesday, the Post has learned.
While the insider said the administration wanted to avoid triggering any sudden market fluctuations with statements about cutting stamp duty, analysts and a lawmaker argued Hong Kong should follow Beijing’s lead in reducing the rate. Mainland Chinese authorities on Monday halved stamp duty for stock trades in a bid to invigorate the capital market.
“[Releasing] such a message [now] will be seen as intervening in the stock market,” the source said.
The Hang Seng Index has declined by about 9 per cent this year, and average daily turnover shrank 16 per cent to HK$115.5 billion (US$14.7 billion) in the first half, year on year.
The Financial Secretary’s Office said the task force would study factors affecting market liquidity before coming up with recommendations for Lee.