Hong Kong’s inventory market stamp responsibility revenue is filling town’s monetary coffers on the quickest tempo since 2021, amid a bull run on the native bourse that has attracted scores of preliminary public choices (IPOs) and fuelled frenzied buying and selling.
Duties from transactions and transfers rose to HK$29.69 billion (US$3.78 billion) within the first 5 months of 2025, in response to calculations by the Submit based mostly on authorities information. Contributions from the inventory market jumped 42.5 per cent to HK$52.17 billion for the monetary 12 months that led to March, accounting for about 90 per cent of complete stamp responsibility income and 9.3 per cent of the federal government’s income, serving to to plug the fiscal gap left by a slumping property market.
It additionally vindicated the onerous stance taken by Monetary Secretary Paul Chan Mo-po, who resisted stress from native brokers who asserted that the November 2023 lower in transaction prices to 0.1 per cent didn’t go far sufficient. At 0.1 per cent, payable by the client and vendor in a transaction, Hong Kong was among the many world’s most cost-effective main markets for buying and selling, surpassed solely by the US, mainland China and Japan, which didn’t cost any transaction charges.
“The decrease stamp responsibility has helped scale back transaction prices, boosting liquidity and buying and selling exercise, which is helpful for the general market,” stated Dickie Wong, director on the Institute of Securities Sellers in Hong Kong. Mixed with near-zero margin financing prices, it has inspired particular person buyers to subscribe to new IPOs, additional supporting market turnover, he stated.
The ceremonial gong utilized by the Hong Kong Exchanges and Clearing Restricted (HKEX) to mark the graduation of buying and selling of a brand new inventory went on a citywide highway present on June 20, 2025. Photograph: Edmond So
The Grasp Seng Index, town’s inventory benchmark, has risen 20 per cent within the first six months of this 12 months, outperforming main indexes globally regardless of the US-China commerce conflict that began this April, roiling the market.
The inventory market’s capitalisation has risen 24 per cent to HK$40.9 trillion as on the finish of Might in response to change information, as buying and selling exercise picked up. Common day by day turnover reached HK$210.3 billion in Might, a 50 per cent improve from a 12 months in the past, whereas day by day turnover for the primary 5 months averaged HK$242.3 billion, greater than double the identical interval final 12 months.
