Innovation, not low costs, will energise Hong Kong stock market, finance chief says in defending tax increase

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Raising the tax on stock trading in Hong Kong will not undermine the city’s competitiveness as a global financial hub, a top official has said, arguing it is innovative policies rather than low costs that will energise the market.

A day after revealing his annual budget, Financial Secretary Paul Chan Mo-po defended raising the stamp duty on stock transactions from 0.1 per cent to 0.13 per cent amid a record deficit, explaining that the city’s main competitor was mainland China, where markets are associated with greater restrictions and expenses.