Chan said investors were primarily trading mainland securities on the Hong Kong stock exchange, where more than half of about 2,100 listed companies were from China. Those mainland firms also accounted for 80 per cent of the market capitalisation and 90 per cent of the turnover in the local bourse, he said.
Hong Kong Exchanges and Clearing was second globally in initial public offerings last year after the United States’ Nasdaq. As a string of mainland companies seek secondary listings in Hong Kong amid the ongoing US-China political fallout, turnover on the stock market has thrived, increasing from a daily average of about HK$100 billion last year to HK$200 billion recently.
He said new taxes some had called for – including a vacancy tax on property developers who hoarded new flats, a goods and services tax, or a capital-gains tax – would each have different impacts on society, businesses and individuals.He added that factors determining potential tax changes included their impact on the city’s competitiveness, how much the Inland Revenue Department would gain, if residents could afford them and whether they aligned with best global practices.
“I don’t want to create any misunderstanding or leave room for wishful thinking for the market so that it may still wonder whether we will put it in place or not. Such a riddle itself could become a factor of speculation,” he said.