Chen Maobo: Will not reduce the stock stamp duty. The main increase in stamp duty this fiscal year comes from stocks.

Hong Kong Financial Secretary Paul Chan Mo-po attended a special meeting of the Finance Committee of the Legislative Council to discuss whether the Hong Kong government will consider examining the stock transfer tax. Paul Chan Mo-po stated that the stock transfer tax is an important part of the Hong Kong government's revenue, and the increase in stamp duty in this fiscal year mainly comes from stocks, while property stamp duty has been significantly reduced due to the unstable market conditions. He emphasized the need to consider public finance and public interest. At the same time, the Hong Kong government will consider Hong Kong's competitiveness compared to other regions in order to prevent business from moving away. Paul Chan Mo-po reiterated that there will be no further reduction in the stock transfer tax unless the external environment undermines Hong Kong's competitiveness. Based on previous studies, he believes that the current level of stamp duty is appropriate in terms of trading volume and competitiveness. As for new areas such as real estate funds and exchange-traded funds, the policies will be more lenient, but the government will still maintain a bottom line in terms of revenue collection and will not neglect the feelings of the general public. Regarding the technological transformation of small and medium-sized securities firms, Paul Chan Mo-po mentioned that the Hong Kong government has provided subsidies to some of these firms through HKEX based on compliance costs and investment in information technology (IT). However, he emphasized that the industry should also actively invest in resources to upgrade infrastructure, IT systems, and embrace transformation. Paul Chan Mo-po also noted that the Hong Kong economy is growing, with the unemployment rate falling from 3.9% to 3.8%. With the economic transformation, certain industries are relatively lagging behind, for example, the financial market and trade are performing well, while the transition to consumer and retail sectors takes time. However, there have been improvements recently, especially since September last year, with monthly retail sales increasing by 6% to 7% year-on-year. The restaurant industry is recovering more slowly compared to retail. It is believed that the unemployment situation in the construction industry will improve as the Hong Kong property market becomes more active.