Amendments to the transaction cost of ETF primary market activities gazette Xu Zhengyu: I want to start the Hong Kong ETF market

Financial News

Written by: Hu Xueneng

2020-05-15 11:26

The Government announced in the Budget earlier the new measures to waive the stamp duty on stock trading in exchange-traded fund primary market activities, and today the Gazette published the Stamp Duty Regulations (Amendment of Schedule 8) Regulations 2020 (hereinafter referred to as "Regulations"), the regulations will be submitted to the Legislative Council for review on 20th of this month, and the procedures will be established after consideration, and will take effect on August 1 this year.

The purpose of the regulations is to amend Schedule 8 of the Stamp Duty Ordinance to waive the stamp duty on stock trading involving exchange-traded fund marketers during the distribution and redemption of exchange-traded fund units listed in Hong Kong.

The Secretary for Financial Affairs and the Treasury, Xu Zhengyu, said that the rapid growth of the exchange-traded fund market has brought new opportunities for the development of the Hong Kong securities market. The new measures will promote Hong Kong's transactions by reducing the transaction costs of exchange-traded funds listed in Hong Kong. The development of the ETF market, and the enhancement of the depth and liquidity of the Hong Kong securities market, thereby consolidating Hong Kong's position as an international financial center.

Xu Zhengyu is pleased to see that the Hong Kong Stock Exchange is committed to introducing further measures to reduce the cost of trading exchange-traded funds in Hong Kong. (Profile picture)

He said that Lejian Hong Kong Stock Exchange (0388) is also committed to introducing further measures to reduce the cost of trading ETFs in Hong Kong. With the joint efforts of both parties, it is confident that it will attract more ETFs to be listed on the Hong Kong market. And it has developed Hong Kong into the preferred ETF hub in the region.

ETF products are investment market trends

When he attended the radio program this morning, he also said that the passive investment fund (ETF) in the international investment market will be an international trend. Through the bundling of various financial products and even passive tracking index funds, it can provide investors with risk management. In this context, the authorities are working hard, including the gazette of the above regulations today. If all goes well, it is hoped that it will come into effect on August 1. This is the policy side hopes that the Hong Kong ETF market can be "started up" from the policy level.

For those who frequently participate in trading believe that Hong Kong ’s stock stamp duty is high and whether it can be reduced or not, Xu said that stamp duty is part of the overall market infrastructure and is a risk management measure. It is believed that there are many hedge funds in the market, and the relatively high transaction costs can make They had certain considerations when entering the field.

Can explore the export of Hong Kong's financial services industry to the Greater Bay Area

Regarding the four ministries and commissions of the People's Bank of China, the Banking Insurance Regulatory Commission and others yesterday issued financial support for the construction of the Guangdong-Hong Kong-Macao Greater Bay Area, Xu Zhengyu pointed out that the Guangdong-Hong Kong-Macao Greater Bay Area aims to become a world-class bay area, combining In one industry, the service industry accounts for 60% of the industry in the Guangdong-Hong Kong-Macao Greater Bay Area. He believes that standing in Hong Kong can explore how to enable Hong Kong ’s financial services industry to export and better serve the Greater Bay Area. The proportion of services in the Bay Area has increased.

As for the appropriation of the budget in the Legislative Council yesterday, Xu said that distributing money is a good thing for the public, and through the consumption of the public, it has a certain effect on promoting the economy. Asked if it is appropriate to relax the property market's hot moves at the right time, Xu Wei did not respond positively, only saying that he would regularly monitor the asset market.

Secretary for Financial Services and the Treasury Xu Zhengyu Hong Kong Stock Exchange