Hong Kong plans to implement a differentiated stock stamp duty policy to boost the popularity of dual listings

In response to increasing competition in the international financial markets, Hong Kong is planning to attract more high-quality overseas companies by adjusting the stock stamp duty. According to informed sources, the Hong Kong Securities Analysts Association has submitted important recommendations to government departments, planning to implement this innovative policy in the upcoming fiscal plan.

The association’s core proposal includes implementing differentiated stamp duty incentives for dual-listed stocks to stimulate market trading activity by reducing transaction costs. They also aim to improve the tax policy framework for foreign companies conducting secondary or dual listings in Hong Kong, establishing clear “safe harbor” rules to provide companies with more stable expectations.

Lower Transaction Costs to Attract High-Quality Overseas Companies to Hong Kong

Reducing stock stamp duty is an effective way to boost trading activity. Offering preferential tax rates for dual-listed stocks can directly lower investors’ transaction costs and enhance Hong Kong’s competitiveness compared to other international financial centers. This significantly encourages overseas companies to list in Hong Kong, especially high-growth firms seeking international financing.

Clarify Tax Policies to Remove Dual Listing Barriers

Tax uncertainty has long been a major obstacle for companies considering dual listings. The association recommends improving the stamp duty incentive system while establishing a more transparent and clear tax guidance framework. By setting explicit “safe harbor” rules, companies can develop international listing strategies with more stable policy expectations, reducing risks caused by policy ambiguity.

Enhance Market Diversity and Strengthen Hong Kong’s Status as an International Financial Center

Improving the dual listing system will attract more industry-leading companies to raise funds in Hong Kong, increasing the depth and diversity of the stock market. These policy enhancements will not only boost the attractiveness of Hong Kong stocks but also solidify Hong Kong’s position as an international financial hub. By optimizing the structure of stamp duty and the tax policy system, Hong Kong’s financial market aims to achieve both an improved investor base and increased trading activity.