Hong Kong housing market policies fully rolled back! Additional stamp duty, buyer's stamp duty, and new residential stamp duty will be abolished with immediate effect.

On February 28, Hong Kong Financial Secretary Paul Chan Mo-po presented the Fiscal Budget for 2024-25. Paul Chan Mo-po stated that, after careful consideration of the current overall situation, the government has decided to revoke all property demand management measures for residential properties with immediate effect. This means that starting from today, all residential property transactions will no longer require additional stamp duties, buyer's stamp duties, and new residential stamp duties. He believes that these measures are no longer necessary given the current economic and market conditions. Paul Chan Mo-po pointed out that the Hong Kong government announced adjustments to the property demand management measures on October 25 last year. These adjustments included shortening the application period for additional stamp duties from three years to two years, halving the rates for buyer's stamp duties and new residential stamp duties, and implementing a scheme for exempting then charging stamp duties for property purchases by non-locals. Among these, the scheme for exempting then charging stamp duties has been well-received, with over five hundred applications approved, demonstrating Hong Kong's attractiveness to foreign talent. In terms of the stock market, Hong Kong is rapidly implementing various proposals put forward by the Liquidity Enhancement Initiatives Subcommittee last October, including reforming the Growth Enterprise Market (GEM). The Hong Kong Exchanges and Clearing has sought market feedback on establishing a share repurchase mechanism and ensuring market operations during adverse weather conditions, with the goal of implementing these measures by the middle of this year. Furthermore, to enhance market efficiency and liquidity, the Securities and Futures Commission and the Hong Kong Exchanges are exploring a series of measures, including: 1. Improving the listing mechanism: Researching ways to optimize the price discovery process for initial public offerings (IPOs) and reviewing the public shareholding requirements for listed companies, aiming to enhance market efficiency. The listing requirements and arrangements for structured products will also be optimized, with reduced listing costs. 2. Optimizing trading mechanisms: Exploring narrowing the minimum tick size to reduce bid-ask spreads, with a proposal expected in the second quarter of this year; further research on optimizing stock trading units; and exploring further enhancements to position limits and margin arrangements for derivative products to better meet risk management needs. 3. Enhancing investor services: Studying ways to optimize real-time market information services to provide tailored services at reasonable prices to different investors. 4. Strengthening market promotion: The Hong Kong Exchanges will enhance promotion of the Hong Kong securities market through overseas offices and actively deepen connections with the Middle East and ASEAN regions to attract more issuers and funds. Paul Chan Mo-po also stated that to further enhance market competitiveness, Real Estate Investment Trust (REIT) unit transfers and market makers engaged in securities dealing for options will be exempt from paying stamp duties, with an estimated annual reduction of approximately HK$1 billion in government revenue.