Chairman addresses recent criticisms of the logic behind increasing the stamp duty
Release Date: 2023-08-03
August 3, 2023
1. Quality of Listings
It is well recognized that Hong Kong's listing regulations are more stringent than those in the United States, suggesting that the caliber of companies should not be subpar. However, the trading volume in Hong Kong remains significantly higher. Moreover, with even stricter regulations for mainland listings, it’s curious why they also experience elevated trading volumes. The notion of "quality" appears to be a distraction; the issue lies in the market’s strategic positioning. What aspirations does Hong Kong hold—should it serve as a playground for speculators, a hub for long-term investors, or something less defined?
2. Does Raising Stamp Duty Have No Impact on Trading?
This reasoning is perplexing! If this were accurate, why would there be a reduction in stamp duty for ETFs? Following the decrease, trading volumes for ETFs surged considerably.
3. What Underpins Trading Volume?
Trading occurs solely when buyers and sellers are present. A robust market should cater to a diverse array of investors, encompassing both long-term and short-term participants. Where have the short-term traders disappeared to?
Mofiz Chan
Chairman
Hong Kong Securities and Futures Professionals Association
Related Article
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1. Quality of Listings
It is well recognized that Hong Kong's listing regulations are more stringent than those in the United States, suggesting that the caliber of companies should not be subpar. However, the trading volume in Hong Kong remains significantly higher. Moreover, with even stricter regulations for mainland listings, it’s curious why they also experience elevated trading volumes. The notion of "quality" appears to be a distraction; the issue lies in the market’s strategic positioning. What aspirations does Hong Kong hold—should it serve as a playground for speculators, a hub for long-term investors, or something less defined?
2. Does Raising Stamp Duty Have No Impact on Trading?
This reasoning is perplexing! If this were accurate, why would there be a reduction in stamp duty for ETFs? Following the decrease, trading volumes for ETFs surged considerably.
3. What Underpins Trading Volume?
Trading occurs solely when buyers and sellers are present. A robust market should cater to a diverse array of investors, encompassing both long-term and short-term participants. Where have the short-term traders disappeared to?
Mofiz Chan
Chairman
Hong Kong Securities and Futures Professionals Association
Related Article
Securing a Future for the Securities Industry
[Read More]