Government welcomes passage of Stamp Duty (Amendment) (Stock Transfers) Bill 2023

The Hong Kong government published a press statement to inform of and welcome the passing of the Stamp Duty (Amendment) (Stock Transfers) Bill 2023 on November 16, 2023 to be effective on November 17, 2023. The Bill modifies the Stamp Duty Ordinance to reduce the stamp duty rate on stock transfers, including sales and purchases, from 0.13% to 0.1%. The purpose of the rate reduction is to lower investors‘ transaction costs to help attract more enterprises to list in Hong Kong and enhance Hong Kong’s overall financial market competitiveness.
To recall, the rate was increased in 2021 from 0.1% to 0.13% to increase the revenues of the government. The now concluded decrease follows a corresponding recommendation by the Task Force on Enhancing Stock Market Liquidity and a corresponding announcement in the policy address 2023 of the Chief Executive.