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印花税上调30%,8月1日开始!港股再迎大考,A股投资者影响几何?

Stamp duty increased by 30%, starting August 1st! Hong Kong stocks are facing another big test. What is the impact of A-share investors?

證券時報 ·  Aug 1, 2021 23:00

After months of uproar, the stamp duty increase on the Hong Kong stock market was officially implemented on August 1, 2021, and the stamp duty rate on stock transactions was officially raised from 0.1% to 0.13%.

01 official landing of stamp duty adjustment for Hong Kong stock transactions: from 0.1% to 0.13%

I believe that in the past few days, the stock trading software interfaces of some A-share investors have popped up a hint that the stamp duty rate on stock transactions in the Hong Kong market will be formally increased.

Relevant hints indicate that the stamp duty rate on stock transactions in the Hong Kong market will be formally adjusted from August 1, 2021.

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In fact, a few days ago, the Shanghai and Shenzhen exchanges have issued a notice on this.

According to the announcement of the Stock Exchange of Hong Kong Limited (hereinafter referred to as the Stock Exchange) to increase the stamp duty on stock transactions, the stamp duty on stock transactions in the Hong Kong market will be charged at 0.1% of the transaction value from August 1, 2021, the SSE notice said. It will be increased to 0.13% of the transaction amount (rounded up to yuan, less than one yuan is counted as one yuan). In accordance with the relevant provisions of Article 76 of the measures for the implementation of the Shanghai-Hong Kong Stock Connect of the Shanghai Stock Exchange, investors shall pay the relevant fees in accordance with the relevant provisions of the Stock Exchange.

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The notice of the Shenzhen Stock Exchange also mentioned that with effect from August 1, 2021, the stamp duty rate on stock transactions in the Hong Kong market has been raised from 0.1% to 0.13%. In accordance with the relevant provisions of the Shenzhen Stock Exchange's measures for the implementation of the Business of Shenzhen-Hong Kong Stock Connect, investors conducting Hong Kong Stock Connect transactions under the Shenzhen-Hong Kong Stock Connect shall pay relevant fees in accordance with the relevant regulations of the Stock Exchange market.

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Earlier, the Legislative Council of the Hong Kong Special Administrative region passed the Revenue (Stamp Duty) Bill 2021 (the Bill) on the third reading of the high vote on June 2 this year.

The Stock Exchange of Hong Kong Limited issued a notice on June 3 this year to increase the stamp duty on stock transactions, bringing it to the attention of exchange participants. According to the circular, the Revenue (Stamp Duty) Bill 2021 was gazetted on 5 March 2021. The second and third readings of the Revenue (Stamp Duty) Bill 2021 were passed by the Legislative Council on June 2, 2021, confirming that the Bill will take effect from 1 August 2021. According to the Bill, together with other amendments, the stamp duty rate payable on contract notes for the sale or purchase of Hong Kong securities (but not securities distribution business) will be increased from 0.1% to 0.13%.

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02 Hong Kong stocks fell sharply under the news of the increase in stamp duty and gradually digested in the following few months

The news of the increase in stamp duty on Hong Kong stock transactions first came out in February.

On February 24, 2021, the Financial Secretary of the Hong Kong Special Administrative region Government, Mr Paul Chan, said that after fully considering the impact on the securities market and international competitiveness, we decided to introduce a bill to adjust the rate of stamp duty on stocks, from the current 0.1% paid by buyers and sellers according to the transaction amount. To 0.13%.

On the day of the news, the Hang Seng index fell 2.99%, and the Hong Kong Stock Exchange fell more than 9% at one point during the day.

The Hang Seng Index adjusted slightly further in the next few trading days, but the news has been gradually digested since then. From March to June this year, the Hang Seng Index generally fluctuated in a small range, and the market performance was relatively stable.

However, since July this year, with the decline of a number of Internet stocks, the Hang Seng Index has begun a sharp decline, and the index has recently set a new low for the year.

As one of the stocks most closely linked to the popularity of the stock market, HKEx shares fell sharply after the news of the stamp duty increase, but have since returned to calm, with HKEx shares still up nearly 20 per cent during the year.

03 what is the impact of the increase in stamp duty on Hong Kong stocks?

Stamp duty is a cost in the transaction of securities investors. In theory, increasing the stamp duty rate will increase the transaction costs of Hong Kong stock investors and may have a certain impact on transaction activity.

According to the stamp duty increase plan, the stamp duty rate is increased from 0.1% of the transaction value to 0.13%, an increase of 30%.

At present, the main channel for mainland investors to invest in Hong Kong stocks is the Hong Kong Stock Connect, which means that the transaction costs for mainland investors to invest in Hong Kong stocks will also rise.

In recent years, with the listing of mainland new economy companies and large Internet companies in Hong Kong one after another, attracting the attention of a large number of mainland investors, more and more people have opened the business authority of Hong Kong stocks, and the scale of investing in Hong Kong stocks through this channel is also increasing. Data show that at present, the cumulative net purchase of southbound Hong Kong Stock Exchange has exceeded HK $2.1 trillion.

In addition, the increase in stamp duty on Hong Kong stocks will raise the costs of some short-term and high-frequency trading investors.

According to the research point of view of Everbright International in March this year, stamp duty in Hong Kong has been adjusted several times since 1993, but the performance of the Hang Seng Index is different. this shows that the impact of stamp duty adjustment on market trends cannot be generalized.

Everbright International pointed out that the increase in stamp duty will indeed have a certain impact on the stock market in the short term. High-frequency trading in the Hong Kong stock market accounts for about 20% of the Hong Kong stock market. If the stamp duty is increased by 30%, the overall transaction cost will increase significantly for many short-term procedural transactions, and there will indeed be some impact in the short term.

Everbright International believes that in the medium to long term, the increase in stamp duty will not change the investment logic of Hong Kong stocks. During the year, there were many high-quality IPO and second-quality companies listed back to Hong Kong. Hong Kong brings together many excellent new economy enterprises in China, such as technology, consumption, medicine, and so on. The average price-to-earnings ratio of the Hang Seng Index is lower than that of other major capital markets.

Everbright International believes that the impact of the stamp duty increase on Hong Kong stocks is a short-term emotional resonance, leading to the withdrawal of some funds, but in the long run, the withdrawal of hot money is conducive to defusing speculative risks rather than condensing risks. reducing speculative trading can help Hong Kong stocks adjust their market structure and benefit the future trend.

For the Hong Kong Government, raising the stamp duty rate will increase revenue.

Earlier, Xu Zhengyu, director of the Treasury Bureau of the Hong Kong Special Administrative region Government, said that the government decided to adjust the stamp duty on shares mainly from the perspective of increasing government revenue in order to maintain sound public finances.

Xu Zhengyu said at the time that a slight increase in stamp duty would not undermine the competitiveness of the stock market. It is because the competitiveness of the local securities market is based on a sound system, including a mature financial infrastructure, excellent asset quality and increasingly close economic ties with the mainland market. Coupled with Hong Kong's free flow of capital, the rule of law and judicial system, as well as a regulatory system in line with international standards, these are unique and irreplaceable advantages.

Edit / emily

The translation is provided by third-party software.


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