With such "robust" capital markets activity, raising the trading stamp duty may offer Hong Kong "a quick solution" to increase its tax revenue in the short term, said Stanley Ho, a partner for corporate tax advisory at consultancy KPMG China.
"However, it is also important for Hong Kong's capital markets to stay competitive with global financial markets, many of which are trending towards reducing or removing such duties," Ho said in a statement after Chan's budget speech.He explained that the government is working on promoting Hong Kong as a center for sustainable and green finance, developing further the city's fixed income markets and encouraging more activity in the asset and wealth management sectors.
On the stock market sell-off after his announcement of the trading tax hike, Chan said Hong Kong wasn't the only one experiencing a "downward adjustment" following a previous run-up. "So, I would not be bothered by temporary fluctuations in the market. What we believe is we continue to work hard to enhance the offering of our market to further enhance the competitiveness and attractiveness of the Hong Kong market," he said.
Poor Hong Kong. I'd didn't take long for China to ruin it.
More good news please(((