Hong Kong’s Financial Secretary, Paul Chan Mo-po, has warned that simply reducing the tax on securities trading may not rejuvenate the city’s stagnant stock market and could potentially undermine investor confidence. Chan’s statement on stamp duty on securities comes after the establishment of a 13-member task force led by Carlson Tong Ka-shing last week. Tasked with reviewing factors impacting the stock market’s performance, the group will explore ways to address structural issues. Chan’s remarks are particularly significant in light of mainland China’s recent decision to cut its stamp duties rate. However, Chan highlighted that despite a hike in stamp duty in 2021, trading activities increased, emphasising that market sentiment and geopolitical factors are more influential than tax rates.
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