- Wednesday, October 16, 2024
Hong Kong is taking steps to rejuvenate its status as a financial hub and provide a boost to its struggling property market. Chief Executive John Lee announced several measures aimed at reviving property sales in the city.
One of the key initiatives is the reduction of home-purchase taxes by half. Additionally, homeowners will now be able to sell their properties without incurring extra tax after holding them for just two years, compared to the previous three-year requirement.
In his statement, Lee acknowledged the impact of rising interest rates, slowed economic growth in various countries, and a decline in local property transactions, which have been accompanied by a downward adjustment of property prices.
The decision to implement these measures is driven by the expected increase in housing supply in Hong Kong over the next few years.
To further incentivize property purchases, the stamp duty on residents buying additional homes will be halved to 7.5%. Similarly, non-residents who wish to purchase a home in the city will see their stamp duty reduced to the same level.
In addition to real estate measures, Lee also announced a reduction in the stamp duty on stock trades on the Hong Kong Exchange. The duty will now be set at 0.10% of the trade value, applicable to both the buyer and seller. This reduction comes after the duty was temporarily increased to 0.13% amidst the pandemic in 2021.
These tax cuts and adjustments are expected to provide a much-needed boost to Hong Kong's property market and enhance its position as a leading financial center in Asia.
The Importance of a Vibrant Stock Market in Hong Kong
The local bourse in Hong Kong has announced its plans to implement various measures to enhance its stock market and maintain its position as an international financial center. These initiatives include lowering certain market-data fees, introducing new listing rules for research-and-development-focused companies, and considering reducing minimum trading spreads.
Upholding Hong Kong's Competitiveness
Lee, a representative of the local bourse, emphasized the significance of a vibrant stock market in upholding Hong Kong's status as an international financial center and ensuring its competitiveness. As part of these efforts, Hong Kong aims to bolster its reputation as a hub for global business.
Addressing Rising Risks
These measures are particularly important given the rising risks associated with U.S.-China tensions, an economic slowdown in mainland China, and the tightening of national-security regulations in Hong Kong. The Wall Street Journal recently reported that the number of U.S. companies operating in Hong Kong has declined for four consecutive years, reaching its lowest level since 2004.
Strengthening Offshore-Yuan Business
In addition to enhancing the stock market, Hong Kong seeks to strengthen its offshore-yuan business. To achieve this, the city plans to promote the inclusion of yuan counters under the Southbound Trading of Stock Connect, facilitating the trading of Hong Kong stocks in yuan. Furthermore, Hong Kong intends to introduce offshore mainland government bond futures and expand the variety of RMB investment products, further solidifying its position as an offshore RMB center.
In conclusion, the local bourse's efforts to improve the stock market in Hong Kong are crucial for maintaining the city's reputation as an international financial center. By implementing various measures and addressing risks, Hong Kong aims to attract businesses and investors from around the world. Furthermore, strengthening its offshore-yuan business will solidify its position as a hub for RMB investment and contribute to its overall financial strength.
All Rights Reserved © 2024
Post a comment